China's three departments jointly issued a notice on the interest discount policy for residents' home purchase loans

China News Service, Beijing, September 29 (Reporter Zhao Jianhua) On the 29th, the Ministry of Finance of China, the People's Bank of China, and the State Financial Supervision and Administration Bureau jointly issued the "Notice on Implementing the Interest Subsidy Policy for Residential Home Purchase Loans." Starting from October 1, 2026, the interest discount policy for residents’ home purchase loans will be implemented nationwide, and the implementation period is tentatively scheduled for one year.

During this period, for newly issued commercial personal housing loans for eligible first homes by the handling banks, the financial department will provide interest subsidy support of 1 percentage point per year based on the loan principal and with a term of no more than 5 years. The upper limit of the loan scale that a single household can enjoy discount interest is 1 million yuan (RMB, the same below).

According to the relevant persons in charge of the above three departments, the central government's policy of discounting interest rates for residents' home purchase loans is an exploration of ways to protect and improve people's livelihood in the housing field. By defining the total price of the house, the area of ​​the house, the loan category, etc., it will benefit the target group as accurately as possible and help households with relatively low incomes who plan to buy the most ordinary houses to "reduce their monthly payments."

The policy focuses on the first set of homes that are urgently needed, and focuses on supporting ordinary families to purchase new small and medium-sized, lower-priced housing. Interest discount support will be provided to households that meet the following conditions at the same time: using newly issued commercial personal housing loans to purchase their first home, excluding using newly issued commercial personal housing loans to replace existing loans; the building area of ​​the purchased house is less than 120 square meters (including 120 square meters); the price of the purchased house is less than 1.5 million yuan (including 1.5 million yuan).

The person in charge said that setting the above conditions is mainly to focus on supporting the basic housing purchase needs of groups in urgent need. Taking into account the different income, housing area, price level, etc. of residents in different cities, the central level coordinates to benefit people's livelihood, protect basic needs, wide coverage, promote fairness and financial possibilities, and strive to balance it across the country.