TMTPOST--China announced Friday that the minimum down payment ratios for individuals' commercial housing mortgages will be lowered to no less than 15% for first-home purchases, and 25% for second-home purchases, according to People's Bank of China and National Financial Regulatory Administration.

China also abolishes the lower limit of the interest rate for commercial individual housing loans at the national level, according to the authorities.

Meanwhile, China will cut the loan rates of individual housing provident fund by 0.25 percentage points, the central bank announced Friday.

Starting May 18, the interest rate of first-home loans that mature within or at five years will be set at 2.35%, while the over-five-year rate will be slashed to 2.85%, the People's Bank of China said on its website.

For second-home purchases, the interest rate of loans that mature within or at five years will be no lower than 2.775%, while the over-five-year rate will be no lower than 3.325%.

The housing provident fund is a long-term housing savings plan made up of compulsory monthly deposits by both employers and employees. It can only be used by employees for house-related expenses.