China's Homeowners Could Refinance $5.4 Trillion in Mortgages

China is considering allowing homeowners to refinance up to $5.4 trillion in mortgages to lower borrowing costs. They can renegotiate terms with current lenders before January, or switch banks for the first time since the global financial crisis.

China is contemplating a significant financial move that could allow homeowners to refinance up to $5.4 trillion in mortgages, according to a report from Bloomberg News on Friday.

Citing unnamed sources, the report notes that homeowners will have the option to negotiate terms with their current lenders before January when banks typically reprice mortgages. This initiative could be a substantial relief for many borrowers amid fluctuating economic conditions.

For the first time since the global financial crisis, homeowners will also be permitted to refinance with a different bank, offering them unprecedented flexibility and potential savings.

(With inputs from agencies.)