The Chinese mainland is taking significant steps to make homeownership more accessible by cutting mortgage loan rates and reducing down-payment ratios. Announced by the central bank on Friday, these changes are set to take effect on May 18.
Starting May 18, the interest rate for first-home loans maturing within five years will be reduced to 2.35%, while loans extending beyond five years will see rates decrease to 2.85%, according to the People's Bank of China.
For those looking to purchase a second home, the rates have also been adjusted. Loans for second-home purchases maturing within five years will have a minimum rate of 2.775%, and those extending beyond five years will have a minimum rate of 3.325%, as reported by Xinhua News Agency.
These measures aim to stimulate the housing market by making loans more affordable for both first-time buyers and those seeking additional properties. By lowering the financial barriers to homeownership, the Chinese mainland hopes to boost economic activity and support the real estate sector.
Experts believe that these rate cuts could lead to increased demand for housing, potentially driving growth in construction and related industries. Additionally, more accessible mortgage rates may encourage younger generations to invest in property, fostering long-term economic stability.
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China cuts interest rates of mortgage loans and down-payment ratios
cgtn.com
