Starting October 1 this year, residential home purchase loans will receive financial interest rate support. This is the first time that the central government has discounted interest rates on personal mortgages. On September 29, the Ministry of Finance, the People's Bank of China, and the General Administration of Financial Supervision issued a notice clarifying that eligible residential mortgages can enjoy interest rate discount support of 1 percentage point. The interest rate discount period is up to 5 years, and the maximum loan size for interest discounts can reach 1 million yuan. The policy implementation period is tentatively set at 1 year. On the same day, the People's Bank of China announced adjustments and improvements to a number of monetary policy instruments, including lowering the interest rate on supplementary mortgage loans by 25 basis points and lowering the one-year interest rate from 1.75% to 1.5%. Mortgage supplementary loans are medium- to long-term funds provided by the central bank to policy banks. They are mostly used to support infrastructure and housing. These measures echo the policy arrangements made by the Executive Meeting of the State Council the day before in response to the current economic difficulties. The National Standing Committee pointed out that in response to the problems that have arisen in the current operation of the economy, it is necessary to step up countercyclical adjustment of macroeconomic policies, including strengthening the implementation of policies to expand investment and promote consumer interest rates; it is also necessary to “introduce a number of pragmatic and practical incremental policies” to study and introduce policies and measures to stabilize the real estate market and promote employment income growth. This is the first time that the central financial administration has cut interest rates on personal mortgages. For households in immediate need that are sensitive to monthly payments, this account is still real. It has a positive guiding effect on the current “Golden Nine Silver Ten” property market marketing, as well as the subsequent steady and positive development of the real estate market. Currently, although the signal significance of personal mortgage interest rates is greater than the effect of scale, it indicates that the tool for stabilizing the property market is extending from the monetary side to the financial side. Li Yujia, chief researcher at the Housing Policy Research Center of the Guangdong Provincial Institute of Urban and Rural Planning, suggested that policies to bail out the market should be a combo punch. Multiple policies combined to form stronger effects, such as further reduction in demand-side transaction taxes and fees, and supply-side promotion of provision of public services at places of permanent residence, such as unemployment assistance, minimum subsistence security, and equal education for children.

Starting October 1 this year, residential home purchase loans will receive financial interest rate support. This is the first time that the central government has discounted interest rates on personal mortgages. On September 29, the Ministry of Finance, the People's Bank of China, and the General Administration of Financial Supervision issued a notice clarifying that eligible residential mortgages can enjoy interest rate discount support of 1 percentage point. The interest rate discount period is up to 5 years, and the maximum loan size for interest discounts can reach 1 million yuan. The policy implementation period is tentatively set at 1 year. On the same day, the People's Bank of China announced adjustments and improvements to a number of monetary policy instruments, including lowering the interest rate on supplementary mortgage loans by 25 basis points and lowering the one-year interest rate from 1.75% to 1.5%. Mortgage supplementary loans are medium- to long-term funds provided by the central bank to policy banks. They are mostly used to support infrastructure and housing. These measures echo the policy arrangements made by the Executive Meeting of the State Council the day before in response to the current economic difficulties. The National Standing Committee pointed out that in response to the problems that have arisen in the current operation of the economy, it is necessary to step up countercyclical adjustment of macroeconomic policies, including strengthening the implementation of policies to expand investment and promote consumer interest rates; it is also necessary to “introduce a number of pragmatic and practical incremental policies” to study and introduce policies and measures to stabilize the real estate market and promote employment income growth. This is the first time that the central financial administration has cut interest rates on personal mortgages. For households in immediate need that are sensitive to monthly payments, this account is still real. It has a positive guiding effect on the current “Golden Nine Silver Ten” property market marketing, as well as the subsequent steady and positive development of the real estate market. Currently, although the signal significance of personal mortgage interest rates is greater than the effect of scale, it indicates that the tool for stabilizing the property market is extending from the monetary side to the financial side. Li Yujia, chief researcher at the Housing Policy Research Center of the Guangdong Provincial Institute of Urban and Rural Planning, suggested that policies to bail out the market should be a combo punch. Multiple policies combined to form stronger effects, such as further reduction in demand-side transaction taxes and fees, and supply-side promotion of provision of public services at places of permanent residence, such as unemployment assistance, minimum subsistence security, and equal education for children.