China's major lenders unveil mortgage rate adjustment measures

China's six major national commercial banks on Saturday unveiled detailed measures to adjust interest rates for outstanding mortgage loans in line with the central bank's policies to stabilize the property market.

The adjustment will be implemented starting from Oct. 25, 2024, according to statements by major lenders namely Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.

Mortgage rates for first homes, second homes and more will be reduced to 30 basis points below the loan prime rate, the statements said.

This mortgage rate adjustment will be implemented uniformly and customers do not need to apply for it, according to the statements.

China's central bank requested last month that commercial banks lower interest rates for outstanding mortgage loans as the country aims to reduce financial burdens on property owners.

The move comes after a Sept. 26 meeting of the Political Bureau of the Communist Party of China Central Committee underlined the need for efforts to "reverse the downturn of and stabilize the real estate market."