Beijing has become the latest Chinese city to reduce downpayment and mortgage rates for homebuyers in an effort to kickstart its ailing housing market, reports Caixin. Authorities in Beijing announced a reduction in the downpayment first-time homebuyers need to find from 30% to a minimum of 20%. Downpayment requirements for second home buyers were lowered to between 30% and 35% depending on location, from a previous rate of 40% to 50%.
The city also reduced the floor on mortgage rates to as low as 3.5%. Families with more than one child and those who buy certified energy-saving properties will be given more favorable terms, according to a government notice.
Beijing has now joined the rest of China’s mega tier-1 cities, including Shanghai, Shenzhen and Guangzhou, in further relaxing home purchase requirements following central government moves to arrest a prolonged property market downturn.