Central Bank Policy Package: Lowering Mortgage Rates and Down Payment Requirements for Second Homes to Boost Real Estate Market Recovery

The central bank has rolled out a policy package aimed at boosting the real estate market. Key measures include reducing the interest rates on existing mortgage loans and lowering the minimum down payment ratio for second homes to 15%.

The interest rates on existing mortgage loans will be reduced by an average of 0.5%, significantly easing the financial burden on households and promoting consumption. The reduction in the down payment ratio for second homes lowers the threshold for upgrading housing, helping to release latent demand, especially in economically developed and high-population-influx cities.

Experts analyze that these policies not only address the reasonable demands of the public but also signal that the real estate market is gradually emerging from a trough. Although lowering the down payment ratio increases the leverage of homebuyers, it also reflects the central bank's confidence in the long-term stability of housing prices.