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Bloomberg
Saddled with a slumping property market, China is extending measures introduced in September 2022 that allow lower mortgage rates for first-home buyers if newly constructed house prices drop for three consecutive months.
Cities are eligible to maintain, lower or remove minimum interest rates on loans for first home purchases, according to a statement from the central bank and banking regulator. The measures will “form a long-term mechanism to support a stable and healthy property market,†they said.
Local authorities should evaluate house prices every three months, with December 2022 as the starting point. Prices need to drop both month-on-month and year-on-year for cities to qualify for easing, according to the statement.
If a city’s home prices increase for three consecutive months, local governments should re-adopt the national minimum interest rates on first-home loans. Existing rules for second-home mortgage loans are unchanged.