China eases home purchase restrictions to boost economy China’s central bank and banking sector watchdog excited the domestic real estate market Tuesday by announcing relaxed rules for second home buyers, in order to shore up the country’s cooling housing market and to boost the domestic economy. The People’s Bank of China and the #China Banking Regulatory Commission say that families that own a home and have paid off their mortgages would be treated by banks as first-home buyers when applying mortgage for their second home. That means second-home buyers can now get a #discount as much as 30% on their mortgage rates, a privilege previously limited to first-home buyers. Down payment levels have also been cut to 30% from 60-70% of the home #price. Click on the following infographic for more: Tuesday’s announcement was unexpected, but a cut in #mortgage rates has always been seen by many analysts as the most effective way to revive the housing sector that’s suffering its worst downturn in two years. Home prices fell for a fourth consecutive month in August, according to China Index Academy. Local governments lift #housing purchase limits As home prices in most cities have been on the downward trend, many cities started to loosen or even cancel their housing market curbing policies, officially or unofficially. But the central government has yet to express its attitude. As of Wednesday, only five major Chinese cities including Beijing are still limiting real estate property purchases. Watch the website: cctvnews.cn/2014/10/01/china-eases-home-purchase-restrictions-to-boost-economy/
Posted on: Wed, 01 Oct 2014 13:36:37 +0000
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