The People’s Bank of China Shanghai Head Office and branches in all provinces, autonomous regions, municipalities, and cities specifically designated in the state plan; state-owned commercial banks; Postal Savings Bank of China; and joint-stock commercial banks:
To implement the decisions and arrangements of the CPC Central Committee and the State Council, respond to new changes in the supply-demand relationship in China's real estate market as well as new expectations of the public for high-quality housing, and promote steady and sound development of the real estate market, this notice is hereby released on the following matters concerning the adjustment of mortgage rate policies.
1.The nationwide policy floor for the interest rates on mortgage loans for first-time and second-time home buyers will be removed.
2.The provincial branches of the People's Bank of China shall, in accordance with the city-specific principle, guide the provincial self-regulatory pricing mechanism for market interest rates to independently determine whether to set a lower limit and lower limit range (if any) for the mortgage rates in the cities within their jurisdiction based on the performance of local real estate markets and the regulation requirements of local governments.
3.The banking financial institutions shall, based on such factors as business operations and customer risk profiles, reasonably determine the specific interest rate on each home loan in line with the lower limit requirement (if any) made by the provincial self-regulatory pricing mechanism for market interest rates.
This notice prevails to the extent of any inconsistency with any relevant prior policies.
The People’s Bank of China
May 17, 2024
