China's financial watchdogs announced Thursday that housing credit policies will be adjusted and optimized.
The interest rates of existing mortgages for first-home purchases will be lowered, according to a joint statement released by the People's Bank of China and the National Administration of Financial Regulation.
The country will also implement a uniform policy on the minimum down payment ratio for individuals' commercial housing mortgages both for first-home and second-home purchases, the statement said.
Lowering the down payment ratio helps reduce down payment burdens and increases the willingness to buy residential properties, said Bruce Pang, chief economist and head of research at JLL Greater China.
This move creates a more conducive credit environment for the recovery of the real estate industry, he added.