Mortgage policies a boon for families

A recent loosening of mortgage policies in China will extend interest rate incentives once available only to first-time buyers to property owners who have already repaid a home loan. But what will this policy shift mean for qualified investors and upgraders?

In the past, a repeat buyer putting a 60-percent down payment on a 3 million yuan ($489,000) home would have had to pay 8,153 yuan per month on a 30-year mortgage.

Now though, such a buyer could shell out as little as 6,267 yuan over the same period.

From a personal finance point of view, the new policies will greatly benefit qualified buyers and their families.

Research from Southwestern University of Finance and Economics indicates that nearly 15 percent of urban families around the country have paid off the mortgage on their first home and expect to purchase a new home within the next five years. Based on this research, nearly 3 million urban families stand to benefit from the favorable new lending policies.

What's more, the cancellation of home purchasing curbs is also a positive development for demand.