(Yicai) May 22 -- Hefei, Xi'an, Wuhan, and other Chinese cities have lowered their down payment ratio for first and second-time home buyers to record low after China unveiled new measures to support its troubled real estate sector.

Hefei, the capital of eastern Anhui province with a population of nearly 10 million, has lowered the down payment ratio for first-time home buyers to 15 percent from 20 percent and mortgage rates to 3.45 percent from 3.75 percent. It also slashed the minimum down payment ratio for second-time home buyers to 25 percent, with a loan rate of 3.65 percent.

The People's Bank of China announced various new real estate market policies, including reducing downpayments to 15 percent, canceling the rate floor on mortgages, and paring the housing provident fund rate by 0.25 percentage point on May 17.

Xi'an in Shannxi province, Zhengzhou in Henan province, Wuhan in Hubei province, Changsha in Hunan province, and other cities successively implemented similar policies.

The down payment ratios in all second-tier Chinese cities will likely be lowered to 15 percent, which will help further revitalize the housing market, The Paper reported, citing Yan Yuejin, research director at E-house China R&D Institute.

Most cities will then likely lower mortgage rates for first and second-time home buyers, said Chen Wenjing, market research director at China Index Academy. Third and fourth-tier cities and standard second-tier cities will adjust policies first, Chen pointed out.

Slashing down payment ratios is conducive to lower the threshold for residents to buy homes and can likely boost the recovery of residents' housing demand, Shanghai Securities News reported, citing Wang Yifeng, an analyst at Everbright Securities.

Editor: Martin Kadiev