On the other hand, the People’s Bank of China announced the reduction to 15% from the previous 20% of the minimum percentage to be disbursed as a down payment for first-time home buyers through mortgage loans.
The Chinese Government announced this Friday a battery of measures aimed at promoting the recovery of the real estate sector of the country facilitating the “digestedn” of the inventory of unsold homes built, for which US$41,550 million will be allocated to finance the acquisition of these properties by public entities to provide homes at affordable prices, in addition to lowering the minimum percentage set as an entry to be disbursed by buyers .
The deputy governor of the People’s Bank of China, Tao Lingexplained that through this new loan mechanism the aim is to encourage financial institutions to support the purchase by public companies of completed and unsold homes “at reasonable prices“to allocate or lease them as affordable housing, which is expected to generate bank loans worth US$69.25 billion.
Program details
In this sense, the program open to 21 national banks, including the China Development Bank, state commercial banks, establishes an interest rate of 1.75% on one-year loans with the possibility of being extended four times, while the People’s Bank of China will issue new loans based on 60% of the principal, lor that it can boost bank loans to half a trillion yuan.
“This policy is an important measure introduced by the People’s Bank of China to support the construction of a new real estate development model and leads to the achievement of multiple objectives through a market-oriented approach,” commented the official, highlighting the goal of “accelerate the clearance of existing housing stock” while boosting the supply of affordable housing, whether for sale or rent.
On the other hand, the People’s Bank of China announced the reduction to 15% from the previous 20% of the minimum percentage to be disbursed as a down payment for first-time home buyers through mortgage loans. while for the acquisition of a second residence the threshold will be 25% from the previous 30%.
Source: Ambito
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