Central bank cuts minimum down payment for first-time home buyers to 20%

The People’s Bank of China has announced that the minimum down payment for first-time home buyers will be lowered to 20% from 25%, while home buyers with an existing mortgage need only to provide a deposit of 30%, down from 40%, South China Morning Post reported. The decision was made “in order to support home buying and to prop up the stable growth of the property market,” the central bank said. The relaxation does not include cities with home purchase restrictionssuch as Beijing, Shanghai, Shenzhen and Guangzhou, where already high prices are expected to continue growing due to strong demand.