China's financial watchdogs announced Thursday that housing credit policies will be adjusted and optimized.
The interest rates of existing mortgages for first-home purchases will be lowered, according to a joint statement released by the People's Bank of China and the National Administration of Financial Regulation.
Starting from September 25, borrowers of existing mortgages for first-home purchases can seek to lower their interest rates by applying for a rate change in the contract or a swap for a new mortgage.
The country will also implement a uniform policy on the minimum down payment ratio for individuals' commercial housing mortgages both for first-home and second-home purchases, another statement said.
The minimum down payment ratio for individuals' commercial housing mortgages for first-home and second-home purchases will be adjusted to be no lower than 20 percent and 30 percent, respectively, nationwide.
In line with the above changes, local governments can change related housing credit policies in a city-specific manner, according to the statement.
