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BEIJING, October 20 (TMTPOST) —Since the central bank and China Banking and Insurance Regulatory Commission (CBIRC) announced the phased relaxation of the lower limit of the first home loan interest rate in some cities at the end of September, the first home loan interest rate has dropped to below 4%.
On September 29, the People"s Bank of China and the CBIRC announced that it will adjust the differential housing credit policy in phases. The governments of eligible cities may independently decide to maintain, lower or remove the lower limit on interest rates for newly issued first home loans locally in phases by the end of 2022. Currently, the nationwide lower limit for first home loan interest rates is no less than the corresponding Loan Prime Rate (LPR) minus 20 basis points, or 4.1%.
According to the new policy, the lower limit of the personal commercial housing loan interest rate for the first house may be relaxed in stages by the end of 2022 for cities where the sales prices of commercial houses saw continuous decline both month-on-month and year-on-year from June to August 2022. According to public statistics, 23 of the 70 large and medium-sized cities in the house price index released by the National Bureau of Statistics meet the requirements of this new policy.
Public information shows that the lower limit of the first house loan rate in Tianjin, Shijiazhuang in Hebei, and Wuhan in Hubei has been lowered to 3.9%, 3.8%, and 3.9% respectively. According to the branch of the People"s Bank of China in Qingyuan city, Guangdong province, from October 1 to December 31, 2022, Qingyuan city will adjust the lower limit of the first house loan rate in phases to a minimum LPR-60BP, which means that the lower limit has been reduced to 3.7%, while Zhanjiang, Jiangmen and Yunfu in Guangdong Province have announced the phased removal of the lower limit of interest rate.
