China central bank lowers mortgage down payment requirement in many cities

China's central bank and banking regulator said they would be lowering the minimum down payment requirement for first-time home buyers in many cities to 25 per cent from 30 per cent.
China's central bank and banking regulator said they would be lowering the minimum down payment requirement for first-time home buyers in many cities to 25 per cent from 30 per cent.PHOTO: AFP

BEIJING (REUTERS) - China's central bank and banking regulator said on Wednesday they would be lowering the minimum down payment requirement for first-time home buyers in many cities to 25 per cent from 30 per cent, in an effort to support the residential property market.

The People's Bank of China and the China Banking Regulatory Commission said that the lower down payment requirement would apply in all cities not currently subject to restrictions on home purchases.

The main cities that have such restrictions are Beijing, Shanghai, Guangzhou and Shenzhen.

The agencies said localities could adjust the minimum down payment requirement if they saw fit, in line with local market conditions.

The statement on the central bank's website did not say specifically when it would take effect, but the notice to local governments and regulatory bodies was dated Sept. 24.