On September 29, China’s Ministry of Finance, the People’s Bank of China, and the National Financial Regulatory Administration issued a notice introducing a mortgage interest subsidy program for homebuyers. The policy, which takes effect on October 1, focuses on first-time homebuyers purchasing smaller, lower-priced homes and is intended to reduce their mortgage interest costs.
Under the policy, eligible households must use a newly issued commercial personal housing loan to purchase their first home, with both new and second-hand homes qualifying. The home must be no larger than 120 square meters (1,292 square feet) and priced at no more than RMB 1.5 million (US$220,000). The government will subsidize interest on up to RMB 1 million of the mortgage at an annual rate of 1 percentage point for up to five years. Based on current first-home mortgage rates, the subsidy is equivalent to roughly one-third of the interest rate. For a RMB 1 million long-term mortgage, it could reduce total interest payments by nearly RMB 50,000.
The policy will initially remain in effect for one year, from October 1, 2026, through September 30, 2027. During the implementation period, all households meeting the eligibility requirements will receive the subsidy, with no overall cap on the amount of fiscal funds available. The government said sufficient funds have been budgeted, with subsidies to be settled based on actual eligible claims.
Source: National Financial Regulatory Administration website, September 29, 2026
https://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1273762&itemId=915