30% for second home, adjustment of minimum down payment ratio for commercial loans: 20% for first home
Notice of the People's Bank of China and the State Administration of Financial Supervision and Administration on Adjusting and Optimizing Differentiated Housing Credit Policies
The headquarters of the People's Bank of China in Shanghai, branches of various provinces, autonomous regions, municipalities directly under the central government, and cities specifically designated in the state plan; All regulatory agencies of the State Administration for Financial Supervision and Administration; Various countries have commercial banks, China Postal Savings Bank, and various joint-stock commercial banks:
In order to implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, adhere to the positioning that houses are for living, not for speculation, adapt to the new situation of significant changes in the supply and demand relationship of China's real estate market, better meet the demand for rigid and improved housing, and promote the stable and healthy development of the real estate market, the People's Bank of China and the State Administration for Financial Supervision have decided to adjust and optimize the differentiated housing credit policy. The relevant matters are hereby notified as follows:
1、 For residential families who take out loans to purchase commercial housing, the minimum down payment ratio for commercial personal housing loans for their first home is uniformly not less than 20%, and the minimum down payment ratio for commercial personal housing loans for their second home is uniformly not less than 30%.
2、 The lower limit of the interest rate policy for commercial personal housing loans for the first set of housing shall be implemented in accordance with current regulations, and the lower limit of the interest rate policy for commercial personal housing loans for the second set of housing shall be adjusted to not less than the market quoted interest rate for the corresponding term loan plus 20 basis points.
3、 The dispatched agencies of the People's Bank of China and the State Administration for Financial Regulation, in accordance with the principle of implementing policies based on urban conditions, guide the self regulatory mechanism of interest rate pricing at the provincial level, and independently determine the minimum down payment ratio and interest rate lower limit for commercial personal housing loans for first and second homes in each city within their jurisdiction based on the real estate market situation and local government regulation requirements.
4、 Banking and financial institutions should reasonably determine the specific down payment ratio and interest rate level for each loan based on the minimum down payment ratio and interest rate lower limit determined by the pricing self-discipline mechanism of market interest rates at each provincial level, combined with factors such as the operating conditions of the institution and customer risk conditions.
The People's Bank of China
State Administration for Financial Supervision and Administration
August 31, 2023