BEIJING: China's four biggest banks lowered mortgage rates in Guangzhou city by 20 basis points on Monday , two people familiar with the matter said - a fresh move aimed at lending support to a property sector reeling from a severe cash crunch.
The move follows decisions by some banks to require smaller downpayments in some cities last week. Media have also reported this month that developers will also gain easier access to presale proceeds from residential projects. For those buying their second homes, the rate was also lowered by 20 basis points to 100 basis points over the LPR, said the people, declining to be identified due to the sensitivity of the matter.The one-year LPR, a market-based benchmark lending rate, was at 3.7 per cent while the five-year rate stands at 4.6 per cent.