First mortgage‑interest‑subsidy loans completed across regions one week after policy launch

According to Securities Daily, the national residential mortgage interest‑subsidy policy had been in force for one week by 7 October 2026. Multiple cities had registered their first completed business cases under this new housing measure.

Issued jointly on 29 September by the Ministry of Finance, the People’s Bank of China and the State Administration of Financial Regulation, the official circular introduced the subsidy scheme for commercial first‑home loans nationwide starting from 1 October. The initiative is designed to lower interest repayment burdens for households purchasing their first residential property.

Major state‑owned commercial banks released public announcements on 30 September to push forward practical implementation. The lenders stated that they would adopt automatic‑eligibility procedures without separate applications, streamline administrative steps and speed‑up policy delivery for home buyers.

The first subsidy‑backed mortgage deals were rolled out successively across different localities. On 1 October, China Construction Bank’s Tianjin branch issued its first subsidised housing loan under the programme. On 3 October, the Qitaihe branch of Industrial and Commercial Bank of China Heilongjiang completed the first subsidised second‑hand home mortgage. The customer took out a 150 000‑yuan loan over a 10‑year term. With the annual fiscal interest subsidy rate of one percentage point applicable for a maximum of five years, the household would save roughly 5 800 yuan in total interest payments within that period. Industrial and Commercial Bank of China Hainan branch finalised its inaugural subsidised mortgage on 5 October.

The policy sets clear eligibility criteria for supported home purchases. Qualified properties must be buyers’ first homes, with a floor area no larger than 120 square metres and a transaction price not exceeding 1.5 million yuan. This framework targets genuine rigid housing demand. Existing housing‑market policies including reduced down‑payment ratios, lower baseline mortgage rates and provident‑fund support operate alongside the new subsidy measure. Combined with ongoing autumn property sales campaigns, these measures help to boost residential housing transactions.