China launches a mortgage interest subsidy for first-time homebuyers

A joint notice from three national regulators gives first-time buyers an annualized 1-percentage-point subsidy on housing loans, starting October 1, 2026.

According to Xinhua (September 30, 2026), the Ministry of Finance, the People's Bank of China and the National Financial Regulatory Administration issued a joint notice with these terms:

• Effective: October 1, 2026, for a tentative one-year implementation period.
• Subsidy: an annualized 1 percentage point on housing loans, for up to five years.
• Who: first-time homebuyers only.
• Which homes: no more than 120 square meters and no more than 1.5 million yuan.
• Loan limit: subsidized loans of up to 1 million yuan.

The same day, the People's Bank of China also announced broader measures, including a lower rate on its pledged supplementary lending facility, as reported by The Korea Times.

Sources

• Xinhua: China to implement mortgage interest subsidies to unlock housing demand
• The Korea Times: China rolls out new measures to bolster its property sector and economy

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