China Eases Mortgage Rules in Bid to Boost Economy

The video discusses a new policy allowing previous homeowners to be treated as first home buyers, enabling them to access lower interest rates and down payments. This change aims to curb property speculation, particularly in major cities like Beijing and Shanghai. While smaller cities have already been implementing similar measures, the policy regularizes these practices nationwide.

What is the main benefit for previous homeowners under the new policy?

• They receive a government grant for home improvement.

• They are exempt from property taxes.

• They are considered first-time buyers, allowing for lower interest rates.

• They can buy a second home without any down payment.

Why was the new policy introduced?

• To increase the number of homes available for rent.

• To encourage people to move to rural areas.

• To prevent property speculation in major cities.

• To reduce the cost of building new homes.

What was the previous requirement for homeowners wanting to upscale to a bigger home?

• They were required to sell their current home first.

• They needed to pay a high interest rate and up to 80% down payment.

• They had to pay a 50% down payment.

• They had to live in the new home for at least 5 years.

Which cities are expected to see the most impact from the new policy?

• Nanjing, Suzhou, Tianjin, Chongqing

• Chengdu, Wuhan, Xi'an, Hangzhou

• Beijing, Shanghai, Shenzhen, Guangzhou

• Dalian, Qingdao, Shenyang, Harbin

How do smaller cities differ in their approach to the new policy?

• They do not allow any form of property speculation.

• They have already been implementing similar measures.

• They offer higher interest rates to discourage buying.

• They have stricter regulations than larger cities.