Individual housing provident fund loan interest rates will be lowered starting from May 18
The People’s Bank of China has decided to lower the personal housing provident fund loan interest rate by 0.25 percentage points starting from May 18, 2024. The interest rates for first-time personal housing provident fund loans under 5 years (including 5 years) and over 5 years will be adjusted to 2.35% and 2.85 respectively. %, the interest rates for second personal housing provident fund loans of less than 5 years (including 5 years) and more than 5 years are adjusted to no less than 2.775% and 3.325% respectively.
Adjustment of minimum down payment ratio for personal housing loans
The People’s Bank of China notified that for households that purchase commercial housing with loans, the minimum down payment ratio for commercial personal housing loans for their first homes will be adjusted to no less than 15%, and the minimum down payment ratio for commercial personal housing loans for their second homes will be adjusted to no less than 25%.
On this basis, all provincial branches of the People’s Bank of China and all dispatched offices of the State Financial Supervision and Administration Bureau independently determine the minimum commercial individual housing loans for first and second homes in each city under their jurisdiction in accordance with the regulatory requirements of the city government and the principle of city-specific policy implementation.