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Mortgage ceiling lowered
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HANGZHOU authorities have announced a new policy to cut the mortgage percentage allowed for certain home buyers.
Effective from September 28, the mortgage ceiling in the city’s housing fund program has been cut from 60 percent to 50 percent for families in Hangzhou with one house and unpaid commercial loans.
Minimum down payment requirements on commercial loans have also been increased from no less than 30 percent to no less than 50 percent for families in Hangzhou with one house and unpaid housing loans.
The move is an attempt to rein in spiraling home prices that deny many first-time home buyers a chance to purchase their own apartment.
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