Chinese homeowners cheer Beijing’s move to cut mortgage rates by a half point
Chinese homeowners hailed Beijing’s decision to cut mortgage rates by a half-point, though some believe the move will not spark a recovery
On Tuesday, China unveiled its stimulus package for the troubled property sector, which included the mortgage-rate reduction and a cut in the down-payment ratio for second homes to 15 per cent from 25 per cent.
Homeowners in China said they were supportive of the central bank’s actions.
“I do not need to plan premature repayment on my home loans any more,” said Jessie Deng, a financial professional at a construction firm. She bought her home in Guangzhou in 2021, when the annual loan rate stood at 5.3 per cent, and needed to repay more than 10,000 yuan a month, which is a normal employee’s monthly salary in the city.