Acting to cool the sizzling property market, China’s central bank on Thursday tightened mortgage lending rules to raise the cost of borrowing for home loans.
The adjustment to preferential mortgage rates, announced by the People’s Bank of China late Wednesday, effectively raised the interest rate on a home loan with a maturity of five years to 5.51 percent — or 90 percent of the base rate of 6.12 percent — from the previous 5.31 percent.
The central bank said banks could also request a minimum down payment on a home of 30 percent of its purchase price, up from 20 percent, in cities where property prices are rising quickly.
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