Beijing Banks Slow To Change Mortgage Policy On Second Homes

In late March, China Lowers Down Payment Rates for Buyers of Second Homes

On Monday, the People's Bank of China said buyers of second homes will be required to make a minimum down payment of 40%, down from the current 60%.

The government lowered the floor on down payments, but it did not make the policy mandatory. Many Beijing banks require 50% down payments on second homes because they're worried about excessive leverage. Four of the five big banks require 50%, and ICBC hasn't budged from 60%. Huaxia Bank, Shanghai Pudong Development Bank and Woori are down to 50%. Whether home buyers can obtain the lower down payment level may depend on their credit and assets. Some banks are also still "researching" the new policy and have yet to implement changes. Home buyers wishing to tap Beijing's public housing fund still need to pony up 60% to 70% for a down payment.

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