Down payment ratio may rise
Updated: 2007-09-19 10:01
China's central bank is mulling to lift the down payment ratio for buying a second house to 40 percent, in an effort to curb speculations in the country's housing market, Guangzhou Daily reports, citing an unnamed source.
The report quotes people familiar with the case as saying, the central bank will soon increase the down payment ratio for their second house mortgage to 40 percent from the current 30 percent, and from 40 percent to 50 percent for business properties.
The source says this is the first time that the central bank has made it clear to increase the down payment ratio to 40 percent. The central bank has required to lift the down payment ratio for buying a second house, however, no standard has been set. Commercial banks usually charge a ratio of 20 to 30 percent.
According to the source, purchasing of the first house or second-hand house will not be affected.
China has set restraining surging housing prices as one of the most important tasks. Official statistics show that, in August, the average housing price in 70 major Chinese cities has increased 8.2 percent year on year.