Spiraling prices spur new rules on lending

The central bank on Friday tightened lending and raised the mortgage down payment for second-home buyers in the latest move to curb surging property prices.

The People's Bank of China, the central bank, and the China Banking Regulatory Commission released new rules that lift the mortgage down payment for second homes to 40 percent from 30 percent. The mortgage rate for second homes has been set at 1.1 times the benchmark rate.

The new rules set the rates higher for buyers wanting to purchase more than one home.