Two departments: reducing the interest rate of first-time housing loans in stock
Notice of the People's Bank of China and the State Administration of Financial Supervision and Administration on Matters Related to Lowering the Interest Rate of Existing First Home Loans
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, guide both parties of commercial personal housing loans to adjust and optimize their assets and liabilities in an orderly manner, and regulate the order of the housing credit market, we hereby notify the following matters related to reducing the interest rate of commercial personal housing loans for the first available housing:
1、 The commercial personal housing loan for the first housing in stock refers to the commercial personal housing loan for the first housing that has been issued by financial institutions before August 31, 2023, or has been signed but not issued, or other commercial personal housing loans for the first housing in stock that the borrower's actual housing situation meets the first housing standards in the city.
2、 Starting from September 25, 2023, borrowers of commercial personal housing loans for their first existing housing can apply to the lending financial institution to issue new loans to replace the commercial personal housing loans for their first existing housing. The interest rate level for newly issued loans shall be determined through independent negotiation between financial institutions and borrowers, but the markup on the quoted interest rate in the loan market shall not be lower than the lower limit of the commercial personal housing loan interest rate policy for the first housing in the city where the original loan was issued. The newly issued loans can only be used to repay the commercial personal housing loans for the first existing housing, and will still be included in the management of commercial personal housing loans.
3、 Starting from September 25, 2023, borrowers of commercial personal housing loans for their first existing housing can also apply to the lending financial institution to negotiate a change in the interest rate level agreed upon in the contract. The changed loan contract interest rate level should comply with the provisions of Article 2 of this notice.
4、 Financial institutions should strictly implement relevant regulatory requirements, conduct penetrating and substantive reviews on the purpose of borrowers applying for operating loans and personal consumption loans, and clearly indicate risks. Intermediary institutions that assist borrowers in illegally replacing existing commercial personal housing loans with commercial loans and personal consumption loans are not allowed to cooperate, and internal personnel who engage in such behavior will be dealt with seriously.
5、 Financial institutions should promptly formulate specific operational rules, organize and implement them effectively, improve service levels, respond to borrower applications in a timely manner, take convenient measures as much as possible, reduce borrower operating costs, and ensure that the relevant requirements of this notice are fully implemented.
6、 The branches of the People's Bank of China and the State Administration of Financial Regulation shall immediately forward this notice to local legal person financial institutions within their jurisdiction, supervise its implementation, and effectively maintain market order.
This notice shall come into effect on September 25, 2023. If there is any inconsistency between the previous relevant regulations and this notice, this notice shall prevail.
The People's Bank of China
State Administration for Financial Supervision and Administration
August 31, 2023