Shanghai Lowers Downpayment Ratios to 20% and Eases Mortgage Restrictions

May 27, 2024, 10:14 AM

Shanghai has implemented significant changes to its housing policy, lowering the minimum downpayment ratios and easing mortgage restrictions. The financial hub has adjusted the minimum downpayment ratio for first-time home buyers to no less than 20%, while the downpayment for second house buyers is set at 30%, according to a local government statement. Additionally, the city has cut the lower limit for interest rates on first home mortgages to LPR minus 45 basis points. Shanghai will also relax other parts of its housing policy, including allowing non-local residents who have paid social security to purchase homes. These measures are part of broader efforts by larger Chinese cities to support the property sector, following the central government’s directives.