China today announced relaxation of mortgage rules for second home buyers to address demand for improved housing and lift the sagging housing market.
Down payment levels for second home buyers in general will be lowered to 40 per cent from the current 60 to 70 per cent, a statement jointly published by the central bank, Ministry of Housing and Urban-Rural Development, and China Banking Regulatory Commission said.
Down payments for second home buyers using public housing funds will be cut to 30 per cent from the current 60 per cent.
The moves are meant to "support residents' demand to improve housing conditions and promote the steady and healthy development of the housing market," said the statement as China looks to ramp up the demand for housing.
