The People's Bank of China (PBoC) of China announced that by the end of September, 95 cities in China have reduced the minimum rates on commercial mortgages for first-time homebuyers. This is reported by Xinhua News Agency, a partner of TV BRICS.
At the end of September, interest rates on existing loans for first-time home purchases worth more than 22 trillion yuan (approximately 3.1 trillion U.S. dollars) were seen falling. As a result of these changes, the average interest rate dropped to 4.27 per cent.
This measure will save borrowers up to 170 billion yuan in interest payments, benefiting 150 million people.
In order to enhance the property market, the People's Bank of China has unveiled a strategy to introduce a range of actions, including reducing mortgage interest rates, with the aim to incentivize individuals to save for loans and foster a stable and robust growth of the property market.