Banks cut rates by about 50 bps on existing mortgage loans
Three major cities lift key home purchase restrictions
Measures aim to boost weak property market, consumption

BEIJING, Sept 29 Reuters China39;s central bank said on Sunday it would tell banks to lower mortgage rates for existing home loans before Oct. 31, as part of sweeping policies to support the country39;s beleaguered property market as the economy slows.

Commercial banks should, in batches, reduce interest rates on existing mortgages to no less than 30 basis points bps below the Loan Prime Rate LPR, the central bank39;s benchmark rate for mortgages, according to a statement released by the People39;s Bank of China PBOC.

It is expected to cut existing mortgage rates by about 50 bps on average.

Across China, a slew of policies including reductions in downpayment ratios and mortgage rates have been introduced this year to support China39;s crisishit property market.

But the stimulus measures have struggled to boost sales or increase liquidity in a market shunned by buyers that has remained a big drag on broader economic growth.

Adding to such efforts, Guangzhou city announced on Sunday the lifting of all restrictions on home purchases, while Shanghai and Shenzhen said they would ease restrictions on housing purchases by nonlocal buyers and lower the minimum downpayment ratio for first homebuyers to no less than 15.

Reuters reported on Friday that Shanghai and Shenzhen were planning to lift key…