China announces mortgage interest subsidy for first-time homebuyers

mortgage interest subsidy first-time homebuyers People's Bank of China real estate stimulus PSL rate cut

China has announced a new mortgage interest subsidy program aimed at supporting first-time homebuyers and stimulating the property market. The policy, jointly issued by the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration, is scheduled to begin on October 1, 2026, for an initial duration of one year.

To qualify for the subsidy, residents must use new commercial individual housing loans to purchase their first home. The eligible properties must have a construction area of no more than 120 square meters and a total price not exceeding 1.5 million yuan. Eligible borrowers can receive an annual interest subsidy of 1 percentage point on loan principals up to 1 million yuan, for a maximum period of five years. This measure is expected to reduce total interest costs for qualifying households by up to 50,000 yuan.

In conjunction with the housing support, the People's Bank of China has implemented broader monetary stimulus measures. This includes reducing the Pledged Supplementary Lending (PSL) rate by 0.25 percentage points, from 1.75% to 1.5%. Additionally, the central bank has expanded its relending programs, increasing the quota for technological innovation and technical transformation by 200 billion yuan to a total of 1.4 trillion yuan, and increasing support for agriculture and small businesses by 500 billion yuan.

Entities

China · Ministry of Finance · Ministry of Finance of the People's Republic of China · National Financial Regulatory Administration · People's Bank of China

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] The central government will cover 90% of the mortgage interest subsidy, with local governments covering the remaining 10%. www.stheadline.com
[● 4 SOURCES] The People's Bank of China reduced the Pledged Supplementary Lending (PSL) rate by 0.25 percentage points, from 1.75% to 1.5%. dev.tnonline.com.br · www.etnet.com.hk · sapo.pt · www.stheadline.com
[○ 1 SOURCE] The relending quota for agriculture and small businesses was increased by 500 billion yuan to 4.85 trillion yuan. dev.tnonline.com.br
[● 8 SOURCES] The mortgage interest subsidy policy will take effect on October 1, 2026. www.singtaousa.com · www.chinesepress.com · dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · +2 more
[● 8 SOURCES] The maximum loan amount eligible for the 1% annual interest subsidy is 1 million yuan. www.singtaousa.com · www.chinesepress.com · dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · +2 more
[● 4 SOURCES] The People's Bank of China increased the relending quota for technological innovation and technical transformation by 200 billion yuan to a total of 1.4 trillion yuan. dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · www.stheadline.com
[● 8 SOURCES] The interest subsidy can be applied for a maximum period of 5 years. www.singtaousa.com · www.chinesepress.com · dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · +2 more
[● 8 SOURCES] The subsidy applies to first-time homebuyers purchasing homes with an area not exceeding 120 square meters and a total price not exceeding 1.5 million yuan. www.singtaousa.com · www.chinesepress.com · dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · +2 more
[● 8 SOURCES] Eligible homes must have a total price not exceeding 1.5 million yuan. www.singtaousa.com · www.chinesepress.com · dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · +2 more
[● 8 SOURCES] The subsidy can be applied for a maximum period of 5 years. www.singtaousa.com · www.chinesepress.com · dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · +2 more
[● 4 SOURCES] The People's Bank of China reduced the Pledged Supplementary Lending (PSL) rate from 1.75% to 1.5%. dev.tnonline.com.br · www.etnet.com.hk · sapo.pt · www.stheadline.com
[● 8 SOURCES] The subsidy applies to first-time homebuyers using new commercial individual housing loans. www.singtaousa.com · www.chinesepress.com · dev.tnonline.com.br · propmodo.com · www.etnet.com.hk · +2 more