Major banks in China announced that they will lower the mortgage rates for first-time homebuyers on existing home loans starting from the 25th.
On the 7th, the Industrial and Commercial Bank of China stated that, in accordance with the requirements of the People's Bank of China and the National Financial Regulatory Administration regarding the reduction of mortgage rates for first-time homebuyers, it will negotiate and adjust the rates for existing loan customers.
The Agricultural Bank of China, Bank of China, and China Construction Bank also decided to reduce mortgage rates on existing loans for first-time homebuyers. The implementation will begin on the 25th.
This measure is interpreted as a follow-up action to stimulate the economy after the benchmark interest rate cut. The strategy is to reduce the interest burden on existing borrowers, thereby promoting increased consumption and investment.
At the same time, major cities such as Beijing, Guangzhou, and Shenzhen have already introduced measures to revitalize the real estate market by allowing people who have already purchased homes to receive benefits similar to those for "first-time homebuyers."
The core of the policy is to recognize a purchase as a first home purchase if the family currently does not own a home under their name, regardless of past history, allowing benefits in the down payment ratio called "Shoufu" (首付) and mortgage rates when buying a house.
The Shoufu ratio varies by city; in Beijing, the down payment for the first home is 35%, while for the second home it is over 60%.
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