BEIJING, Sept 7 Reuters Four of China39;s major state banks said on Thursday they will start to lower interest rates on existing mortgages for firsthome loans, reducing them to levels in place when a home was purchased.

Industrial and Commercial Bank of China Ltd ICBC, China Construction Bank Corp, Agricultural Bank of China and Bank of China, issued separate statements announcing the planned reduction.

The reduction will come into effect on Sept. 25, they said.

Chinese brokerage China International Capital Corp Ltd CICC expected the average reduction for first home buyer39;s mortgage rates would be 50 basis points bps, and it could save them about 200 billion yuan 27.31 billion.

CICC estimated that loans to first home buyers account for about 8090 of total outstanding mortgages.

Chinese regulators announced the policy to help homebuyers last week amid several other support measures announced by Beijing in recent weeks amid mounting concerns over the health of the world39;s secondlargest economy.

The property sector, which accounts for roughly a quarter of the economy, has lurched from one crisis to another since 2021, and contagion fears deepened this month after liquidity stress in leading developer Country Garden became public.

China39;s home loans totalled 38.6 trillion yuan 5.3 trillion at the end of June, representing 17 of banks39; total loan books.

Currently, the national floor of firsthome loans stands at 20 basis points below the benchmark lending rate…