Xinhua News Agency, Beijing, May 17 (Reporter Wu Yu, Li Yanxia) On May 17, the People's Bank of China and the State Administration of Financial Supervision and Administration jointly issued a notice that the minimum down payment ratio of the first and second house loans was reduced to no less than 15% and 25% respectively. The People's Bank of China also announced that the lower limit of the loan interest rate policy for the first and second housing units at the national level would be abolished, and the loan interest rate for individual housing provident fund would be lowered.
According to the notice, for households who purchase commercial housing with loans, the minimum down payment ratio of commercial individual housing loans for the first housing is adjusted to not less than 15%, and the minimum down payment ratio of commercial individual housing loans for the second housing is adjusted to not less than 25%.
At the end of August 2023, the People's Bank of China and the State Administration of Financial Supervision and Administration have unified the policy lower limit of the national minimum down payment ratio of commercial individual housing loans. The minimum down payment ratio of the first and second housing loans is not less than 20% and not less than 30% respectively. On this basis, the adjustment has been reduced.
On the same day, the People's Bank of China announced that the lower limit of interest rate policy for commercial individual housing loans for the first and second housing units at the national level would be abolished. Each provincial branch of the People's Bank of China, in accordance with the principle of implementing policies based on the city, guides the self regulatory mechanism of interest rate pricing in each provincial market, and independently determines whether to set the lower limit and the lower limit level (if any) of the commercial individual housing loan interest rate in each city under its jurisdiction according to the real estate market situation in each city under its jurisdiction and the regulatory requirements of the local government.
The People's Bank of China stressed that banking financial institutions should reasonably determine the specific interest rate level of each loan according to the lower limit of interest rate (if any) determined by the self-discipline mechanism of interest rate pricing in each provincial market, and in combination with their own operating conditions, customer risk status and other factors.
The People's Bank of China also decided to reduce the loan interest rate of personal housing provident fund by 0.25 percentage points from May 18, 2024. The loan interest rate of the first personal housing provident fund for less than five years (including five years) and more than five years was adjusted to 2.35% and 2.85% respectively, and the loan interest rate of the second personal housing provident fund for less than five years (including five years) and more than five years was adjusted to not less than 2.775% and 3.325% respectively. (End)
