China's Ministry of Finance said it will provide interest subsidies from Oct. 1
on newly issued commercial personal housing loans to lower homebuying costs and
support first‑time, necessity-driven urban and rural demand. The subsidy targets
Ordinary families buying small, lower-priced units (unit area ≤120 sqm; purchase
price ≤1.5 mln yuan). Eligible loan principal is capped at 1.0 mln yuan; the
fiscal subsidy equals 1 percentage point (100 bps) annually for up to five
years, about a one-third reduction versus current first‑home commercial mortgage
rates. The ministry estimates the policy could reduce cumulative interest paid
by up to roughly 50,000 yuan on a long-term 1.0 mln yuan mortgage.
