China to Lower Mortgage Interest Rates and Adjust Down Payment Ratios for Homebuyers

China is set to reduce interest rates on mortgage loans and revise down-payment requirements for homebuyers in a move to stimulate the sluggish property market.

The People’s Bank of China announced in three separate statements on Friday that it would eliminate the minimum interest rate levels for first and second home mortgages at a national level. Local branches of the central bank will have the authority to set the floor for commercial mortgages, while financial institutions are instructed to determine interest rates based on business conditions and client risks.

Additionally, China will be changing the minimum down-payment ratio for first-time homebuyers to no less than 15% and for residents purchasing a second home to no less than 25%, according to another statement from the central bank.