Chinese govt eases home purchase rules in new push to boost economy

China unveiled a further easing of its mortgage policies to halt a slump in its residential property market and revive growth in the world’s second-largest economy.

The country is proposing that local governments can scrap a rule that disqualifies people who’ve ever had a mortgage — even if fully repaid — from being considered a first-time homebuyer in major cities, official Xinhua news agency reported on Friday, citing the Ministry of Housing and Urban-Rural Development, the People’s Bank of China and the National Administration of Financial Regulation. City governments can have leeway on whether to adopt the policy, according to the notice. 

China’s real estate sector is unravelling and risks are spreading to the country’s $60 trillion financial system. China’s existing policies have failed to sustain a rebound in the property market as price declines extend across the nation, putting the government’s 5 per cent economic growth target at risk. 

The government also said it will extend the personal income tax rebates for people who buy new homes within one year after selling old homes till the end of 2025, according to a statement from the Ministry of Finance.