China News Service, September 29. According to the website of the Ministry of Finance, on September 29, the Ministry of Finance, the People's Bank of China, and the State Administration of Financial Supervision jointly issued the "Notice on Implementing the Interest Subsidy Policy for Residential Home Purchase Loans", clarifying that starting from October 1, 2026, the interest discount policy for residents' home purchase loans will be implemented nationwide, and the policy implementation period is tentatively scheduled for one year. The full text is as follows:
Notice on Implementing the Interest Subsidy Policy for Residential Home Purchase Loans
Caijin [2026] No. 95
The public finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, the Finance Bureau of Xinjiang Production and Construction Corps, the Shanghai Headquarters of the People's Bank of China and branches of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, all financial regulatory bureaus, and relevant financial institutions:
In order to thoroughly implement the relevant decisions and arrangements of the Party Central Committee and the State Council, and by strengthening the coordination of fiscal and financial policies to support the rigid housing needs of urban and rural residents, it was decided to implement a nationwide residential home purchase loan interest discount policy to reduce the interest burden of commercial personal housing loans for families who are newly purchasing their first homes. The relevant matters are hereby notified as follows:
1. Policy content
(1) Support objects. Residential households that purchase commercial housing with loans and meet the following conditions can enjoy the support of the central government's interest discount policy:
1. Use newly issued commercial personal housing loans to purchase a first home, excluding using newly issued commercial personal housing loans to replace existing loans;
2. The building area of the purchased house is less than 120 square meters (including 120 square meters);
3. The price of the house purchased is less than 1.5 million yuan (including 1.5 million yuan).
(2) Interest discount standards. The policy will be implemented on October 1, 2026, and the implementation period is tentatively scheduled for one year. During this period, the handling bank will issue new commercial personal housing loans for eligible first homes. The financial department will provide an annualized interest discount support of 1 percentage point based on the loan principal and a term of no more than 5 years. The upper limit of the loan size that a single household can enjoy is 1 million yuan.
(3) Sharing ratio. The interest discount funds are borne by the central finance and local finance respectively at 90% and 10%. Among them, the fiscal sharing ratio at the provincial level and below is determined independently by the provincial finance department based on actual conditions.
(4) The handling bank. Banks that carry out commercial personal housing loan business can provide interest discounts on residential home purchase loans in accordance with policy regulations.
2. Fund Management
(1) Working mechanism. The allocation of interest discount funds adopts the method of "advance allocation + settlement". Provincial finance departments establish a "province-to-province" working mechanism in conjunction with provincial branches of national banks, head offices of local corporate banks, private bank head offices, and domestic headquarters of foreign-funded banks (hereinafter collectively referred to as the provincial branches of the handling banks) to shorten the work chain and efficiently carry out various tasks such as pre-allocation, review, settlement, and liquidation of discounted funds. If the handling bank does not have a provincial branch, the headquarters shall contact the provincial finance department in the place of registration.
(2) Operational procedures. The handling bank provincial bank shall submit an application for interest discount funds for the year to the local provincial finance department in the first month after the policy is promulgated and before the end of January each year. The provincial finance department shall summarize the applications for interest discount funds from the handling banks and submit them to the Ministry of Finance in the second month after the promulgation of the policy and before the end of February each year. The Ministry of Finance pre-allocates central fiscal interest discount funds to provincial finance departments in accordance with annual budget arrangements, and provincial finance departments organize and ensure local interest discount funds. Based on the implementation of the policy, the Ministry of Finance and the provincial finance department, the provincial finance department and the provincial bank of the handling bank will separately settle the interest discount funds. After the interest discount period expires, the financial department and the handling bank will handle the liquidation of interest discount funds.
3. Organization and implementation
(1) Consolidate the main responsibilities. The handling bank shall review the qualifications for interest discounts based on relevant information such as online signing and filing and housing sales contracts; strictly perform loan review responsibilities and do a good job in entrusted payment of loan funds, classified statistics, data monitoring, etc.; establish a report statistics system, and report the loan issuance and use of interest discount funds to the Ministry of Finance and provincial finance departments on a monthly basis, with a copy to the Chinese The People's Bank of China and the State Administration of Financial Supervision; when signing a loan contract, inform the interest discount ratio, interest discount period, interest discount amount and other factors in an appropriate manner to ensure that the borrower is aware of the policy content; when collecting interest on a monthly basis, the corresponding interest discount amount will be automatically deducted to achieve "enjoyment without application", and the borrower will be informed of the enjoyment of national policies through mobile phone text messages, APP messages, etc.
(2) Strengthen coordination among all parties. The Ministry of Finance will take the lead in organizing implementation, doing a good job in budget management, and strengthening supervision of the use of funds. The financial management department shall do a good job in real estate credit management according to the division of responsibilities, and guide and urge handling banks to carry out loan issuance and interest discounts in accordance with laws and regulations. Provincial branches of the People's Bank of China share relevant policy implementation status with provincial financial departments to strengthen the coordination and linkage of monetary policy and fiscal policy.
(3) Strengthen joint supervision. The Ministry of Finance, together with the State Administration of Financial Supervision, timely organizes the local regulatory bureaus of the Ministry of Finance and the regulatory bureaus of the State Administration of Financial Supervision to conduct joint spot checks. If it is found that interest discounts have been defrauded through illegal operations, the interest discount funds will be recovered. Banks that conspire with customers to conduct illegal operations will be strictly held accountable. If the circumstances are serious, they will not be allowed to continue to handle relevant interest discount businesses.
Ministry of Finance, People's Bank of China, State Administration of Financial Supervision
September 29, 2026
