- Remove interest rate limits on housing loans
- Starting tomorrow, the housing fund interest rate will be lowered by 0.25%
- The down payment ratio for first-time homebuyers has been lowered to 15%
- 30 billion yuan affordable housing refinancing loans
Abolish the interest rate policy limits for first-time and second-time commercial personal housing loans at the national level
The People’s Bank of China Shanghai Head Office, branches in each province, autonomous region, directly-administered municipality and separately planned cities; all state-owned commercial banks, Postal Savings Bank of China, and all joint-stock commercial banks:
To implement the decisions and deployments of the Party Central Committee and the State Council, adapt to the new changes in the supply-demand relationship of China’s real estate market and people’s new expectations for high-quality housing, and promote the stable and healthy development of the real estate market, we hereby notify you of the following matters regarding the adjustment of interest rate policies on commercial personal housing loans:
I. Abolish the interest rate policy limits for first-time and second-time home commercial loans at the national level.
The People’s Bank of China’s provincial branches, in accordance with the principle of city-specific policies, will guide each province’s local market interest rate pricing self-discipline mechanism. Based on the real estate market conditions within their jurisdictions and the requirements of local governments, they will independently determine whether to set lower limits for commercial individual housing loan interest rates and the level of those limits (if any).
Banking and financial institutions should, based on the interest rate lower limits determined by each provincial market interest rate pricing self-discipline mechanism (if any), and combined with their own operating conditions, customer risk profiles, and other factors, reasonably determine the specific interest rate level for each loan
The interest rate for personal housing provident fund loans has been lowered by 0.25 percentage points
The People’s Bank of China Shanghai Head Office, branches in each province, autonomous region, directly-administered municipality and separately planned cities; policy banks, state-owned commercial banks, Postal Savings Bank of China, and various joint-stock commercial banks:
The People’s Bank of China has decided that starting May 18, 2024, the interest rates for individual housing provident fund loans will be reduced by 0.25 percentage points. The interest rates for first-time home loans with terms of less than or equal to 5 years and over 5 years will be adjusted to 2.35% and 2.85%, respectively. The interest rates for second-time home loans with terms of less than or equal to 5 years and over 5 years will be adjusted to no lower than 2.775% and 3.325%, respectively.
The down payment ratio will be adjusted to no less than 15%
The People’s Bank of China Shanghai Head Office, branches in each province, autonomous region, municipality directly under the central government, and separately planned cities; all regulatory bureaus of the National Financial Regulatory Administration; state-owned commercial banks, Postal Savings Bank of China, and joint-stock commercial banks:
To implement the decisions and deployments of the Party Central Committee and the State Council, adapt to the new changes in the supply and demand relationship of China’s real estate market, and meet people’s new expectations for high-quality housing, and to promote the stable and healthy development of the real estate market, we hereby notify you of the following regarding policies on individual home loans:
For resident families purchasing commercial residential properties through loans, the minimum down payment ratio for first-home commercial personal housing loans is adjusted to no less than 15%, and the minimum down payment ratio for second-home commercial personal housing loans is adjusted to no less than 25%
Based on this, each provincial branch of the People’s Bank of China and each sub-division of the National Financial Regulatory Administration will, in accordance with the requirements of local government regulation and following the principle of city-specific policies, independently determine the lower limit for the first and second home down payment ratio for commercial personal housing loans within their respective jurisdictions
The central bank will establish a RMB 300 billion affordable housing refinancing program
At 4 p.m., representatives from the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, the People’s Bank of China, and the National Financial Regulatory Administration gathered at a routine policy briefing held by the State Council to introduce related policies regarding ensuring housing delivery
At the meeting, Vice Governor of the People’s Bank of China Yao Ling announced that the central bank will establish a 300 billion yuan affordable housing refinancing facility to support local state-owned enterprises in acquiring completed but unsold commercial properties at reasonable prices for use as rental or sales-based affordable housing. This is expected to stimulate 500 billion yuan in bank loans.
According to the central bank, the term for affordable housing lending is one year, with a possible extension of four times, and an interest rate of 1.75%. It targets 21 nationwide banks, encouraging them to provide loans to local state-owned enterprises selected by municipal governments to acquire completed but unsold commercial properties for use as affordable housing. The acquired commercial properties are strictly limited to those already built and unsold by real estate developers.
The People’s Bank of China will soon release a notice on establishing affordable housing refinancing loans regarding this policy