Commercial banks can base higher down payments for mortgages on local economic conditions, real estate markets and their own risk assessments, Yang Shaojun, an official with the China Banking Regulatory Commission, said Tuesday, The Beijing News reported today.

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The current mortgage policy that requires banks to demand a down payment of no less than 30 percent for first-time home buyers is still in place, Yang said, but local commercial banks can make independent decisions on higher down payments.

Asked about some banks in Zhejiang and Beijing that have increased the amount of down payments for first-time home buyers, Yang said that it's normal for commercial banks to do so, the newspaper reported.