China's Ministry of Finance, the People's Bank of China and the National Financial Regulatory Administration have introduced a central government interest subsidy for newly originated commercial mortgages used to buy qualifying first homes. The measure complements recent changes to real estate credit policy by targeting lower income households purchasing ordinary homes. It will apply from Oct. 1, 2026, with an initial implementation period of one year and no aggregate cap on funding for eligible borrowers during that period. Eligible homes may be new or previously owned but must not exceed 120 square meters or cost more than CNY 1.5 million. The subsidy will reduce the annual interest cost by one percentage point on up to CNY 1 million of mortgage principal for as long as five years, potentially cutting total interest by nearly CNY 50,000 on a long term CNY 1 million loan. Mortgage refinancing is excluded, while borrowers using affordable housing or housing provident fund loan programs cannot receive overlapping support. All banks offering commercial personal mortgages may administer the subsidy. Borrowers can authorize the bank when signing the loan agreement, after which the bank will assess eligibility and automatically deduct the subsidy from monthly interest payments.
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 interest subsidy for qualifying newly originated first home mortgages 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. Banks will verify eligibility and apply the subsidy automatically to monthly payments.