Two Departments: Adjusting and Optimizing Housing Credit Policies

The People's Bank of China Shanghai Headquarters, branches in various provinces, autonomous regions, municipalities directly under the central government, and separately listed cities; various regulatory bureaus of the China Banking and Insurance Regulatory Commission; state-owned commercial banks, China Postal Savings Bank, and joint-stock commercial banks:

In order to implement the decisions and arrangements 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 significant changes in the supply and demand relationship in China's real estate market, better meet the demand for both rigid and improved housing, and promote the stable and healthy development of the real estate market, the People's Bank of China and the China Banking and Insurance Regulatory Commission have decided to adjust and optimize differentiated housing credit policies. The relevant matters are notified as follows:

1. For resident households applying for commercial personal housing loans to purchase residential properties, the minimum down payment ratio for the first home loan shall be uniformly set at no less than 20%, and the minimum down payment ratio for the second home loan shall be uniformly set at no less than 30%.

2. The lower limit of the interest rate policy for commercial personal housing loans for the first home shall be implemented in accordance with the current regulations, and the lower limit of the interest rate policy for commercial personal housing loans for the second home shall be adjusted to no less than the corresponding period's loan market quoted interest rate plus 20 basis points.

3. The People's Bank of China and the China Banking and Insurance Regulatory Commission's local offices shall, in accordance with the principle of differentiated policies for different cities, guide the self-discipline mechanism for market interest rate pricing in each province-level market. Based on the local real estate market conditions and local government control requirements, they shall independently determine the minimum down payment ratio and interest rate lower limit for commercial personal housing loans for the first and second homes in each city within their jurisdiction.

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 self-discipline mechanism for market interest rate pricing in each province-level market, as well as their own operating conditions and customer risk profiles.