China's Ministry of Finance, the People's Bank of China and the National Financial Regulatory Administration have introduced a nationwide interest subsidy for qualifying commercial personal loans used to purchase a first home. For eligible loans originated from Oct. 1, 2026, during an initial one-year policy period, fiscal authorities will provide an annual subsidy equal to one percentage point of loan principal for up to five years. The subsidy applies to as much as CNY 1 million of principal per household. Eligibility is limited to newly issued loans for homes measuring no more than 120 square meters and costing no more than CNY 1.5 million. Loans used to refinance existing borrowing are excluded. Banks conducting commercial personal housing lending may participate and must verify eligibility, perform normal underwriting and automatically deduct the subsidy from monthly interest payments without requiring a borrower application. The central government will fund 90% of the subsidy and local governments 10%, while joint supervisory checks will target fraud and bank misconduct.
China's Ministry of Finance, People's Bank of China and National Financial Regulatory Administration launch one percentage point subsidy for qualifying first home mortgages
China's Ministry of Finance, the People's Bank of China and the National Financial Regulatory Administration have launched a one percentage point subsidy for qualifying first home mortgages originated from Oct. 1, 2026. It covers up to CNY 1 million of principal for five years on homes costing no more than CNY 1.5 million and measuring no more than 120 square meters. Participating banks will verify eligibility and apply the subsidy automatically to monthly interest payments.