The People’s Bank of China (PBOC) and China’s State Financial Supervision Authority (SFSA) have jointly issued a Notice on Matters Relating to the Reduction of Interest Rates for First Home Loans in Stock, stating that as of September 25 commercial banks in China will start dealing with applications for reductions in interest rates on first home loans which were issued to home buyers before August 31, 2023.
At the same time, the minimum downpayment ratio for commercial personal housing loans for first and second homes have been adjusted to not less than 20 percent and 30 percent, respectively, 10 percentage points lower than the previous requirements, which will ease the financial pressure on home buyers.
By August 31 this year, around 50 cities had loosened restrictions on the real estate industry, though further notice is awaited for some restriction policies for first-tier cities, especially Beijing and Shanghai.
