On September 29, the People's Bank of China and Banking and Insurance Regulatory Commission issued a notice, deciding to phased adjustment of differentiated housing credit policies. City governments that meet the conditions may independently decide to maintain, lower or cancel the interest rate limit for the first-home loan issued in the local area before the end of 2022. The introduction of this policy measure
is conducive to supporting urban governments to make full use of the policy toolbox for "taking policies based on the city" and promoting the stable and healthy development of the real estate market. Within the scope of local policies, banks and customers can negotiate to determine the specific interest rate level of newly issued first-home loans, which will help reduce residents' interest expenses and better support rigid housing demand.
People's Bank of China , China Banking and Insurance Regulatory Commission Notice on phased adjustment of differentiated housing credit policies
People's Bank of China Shanghai headquarters , branches, business management departments, urban central branches of provincial capitals (capitals) and sub-provincial urban central branches; Banking and insurance regulatory bureaus:
is to insist that houses are for living, not for speculation. , fully implement the long-term mechanism of real estate, implement policies based on the city and make full use of the policy toolbox, better support rigid housing demand, and promote the stable and healthy development of the real estate market. In accordance with the relevant deployment of the State Council, the following notice is hereby issued on phased adjustments to differentiated housing credit policies:
1. For cities where the sales prices of newly built commercial housing have been continuously declining month-on-month and year-on-year in June-August 2022, the lower limit of the first housing commercial personal housing loan interest rate will be phased before the end of 2022. The lower limit of the interest rate policy for commercial personal housing loans for second-home housing units shall be implemented in accordance with the current regulations.
2. In accordance with the principle of "policy based on the city", city governments that meet the above conditions may independently decide to maintain, lower or cancel the interest rate limit for commercial personal housing loans for local first-home housing in stages in accordance with changes in the local real estate market situation and regulatory requirements. The People's Bank of China and the China Banking and Insurance Regulatory Commission will send agencies to guide the provincial market interest rate pricing self-discipline mechanism to cooperate in the implementation.
People's Bank of China China Banking and Insurance Regulatory Commission
September 29, 2022
Source: Central Bank website
