On September 29, the People’s Bank of China (PBC) and China Banking and Insurance Regulatory Commission (CBIRC) announced to adjust differential housing credit policies within a certain period of time. Governments of qualified cities could decide whether to maintain, lower or cancel the lower limit for interest rates on local newly-issued first-home mortgages by the end of 2022.
The move is conducive to supporting local governments to introduce city-specific policies and make full use of the policy toolbox so as to promote the steady and healthy development of the housing market. Banks and clients in qualified cities can negotiate on the specific mortgage rate level for first-time buyers within the scope of local policies. The move will help reduce residents’ interest burdens and better support rigid housing demand.
