Xinhua, Beijing, September 29 — The Ministry of Finance, the People’s Bank of China and the State Financial Regulatory Administration jointly issued the Notice on Implementing Interest Subsidy Policies for Residential Home Purchase Loans (Caijin〔2026〕No.95). The policy will take effect nationwide on October 1, 2026, with an initial duration of one year. This marks the first time central fiscal authorities have rolled out interest subsidies targeting commercial individual housing loans. The measure is designed to precisely cut interest burdens for families with genuine housing needs and stabilize the residential consumption market.
The subsidy scheme targets first-time homebuyers and sets three eligibility criteria. Applicants must take out newly issued commercial loans to purchase their first residential property; existing mortgage refinancing is excluded. The property floor area shall not exceed 120 square meters and the total price shall be capped at 1.5 million yuan. Both new and second-hand homes qualify. The maximum loan amount eligible for the subsidy per household is 1 million yuan. The government offers an annual interest subsidy of 1 percentage point for up to five years. Calculations show that borrowers with a 1-million-yuan loan can save nearly 50,000 yuan in total interest at most. Actual savings vary depending on loan terms and repayment plans. The central government covers 90% of the subsidy funds while local governments bear the remaining 10%. Funding is fully guaranteed, and all eligible households can receive subsidies with no overall quota limit.
Officials from the three authorities stated that the policy prioritizes supporting basic housing needs for ordinary families. It focuses on small and medium-sized, low-priced residential properties and avoids channeling benefits toward large, high-end upgraded housing. Provident fund loans and purchases of indemnificatory housing, which already have supporting policies, cannot be combined with this subsidy. Major commercial banks nationwide will process subsidized mortgage applications. Buyers may submit subsidy applications through banks when applying for home loans, streamlining administrative procedures.
China’s real estate market has remained under adjustment. Local governments have rolled out measures such as home purchase allowances, lower down payment ratios and adjusted interest rates. This nationwide central fiscal interest subsidy represents a powerful coordinated fiscal and financial tool. It further reduces homebuyers’ financing costs and monthly payments for eligible families, unlocking reasonable housing consumption demand. Industry analysts note that the 1-percentage-point annual subsidy is equivalent to an interest rate cut. It will effectively boost confidence among first-time buyers and help stabilize market expectations.
Only new commercial first-home loans issued between October 1, 2026 and September 30, 2027 that meet the requirements are eligible. Prospective buyers are reminded to verify property size, total price and loan type before purchasing to confirm eligibility. Fiscal and financial regulators at local levels will quickly introduce detailed implementation rules, standardize subsidy disbursement and strengthen fund supervision to prevent fraudulent claims.
The three authorities will continue monitoring policy outcomes and market changes. They will adhere to city-specific regulation, further optimize real estate policies, promote steady and sound development of the housing sector, foster a new development model for real estate, and better meet people’s basic housing needs.