To the finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities with separate state planning, the Finance Bureau of the Xinjiang Production and Construction Corps, the Shanghai Head Office of the People's Bank of China and its branches in all provinces, autonomous regions, municipalities directly under the Central Government and cities with separate state planning, all financial regulatory bureaus, and relevant financial institutions:

In order to thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council, support the rigid housing needs of urban and rural residents by strengthening coordination between fiscal and financial policies, it has been decided to implement an interest subsidy policy for resident home purchase loans nationwide, so as to ease the burden of commercial personal housing loan interest on families newly purchasing their first home. Relevant matters are hereby notified as follows:

I. Policy Content

(1) Eligible recipients. Resident families that take out loans to purchase commodity housing and meet the following conditions at the same time may enjoy support under the central fiscal interest subsidy policy: 1. Using newly issued commercial personal housing loans to purchase a first home, excluding the use of newly issued commercial personal housing loans to replace existing loans; 2. The floor area of the purchased housing is below 120 square meters (including 120 square meters); 3. The price of the purchased housing is below 1.5 million yuan (including 1.5 million yuan).

(2) Subsidy standard. The policy shall be implemented from October 1, 2026, with a tentative implementation period of one year. During this period, for eligible first-home commercial personal housing loans newly issued by handling banks, the fiscal authorities shall provide interest subsidy support at an annualized rate of 1 percentage point on the loan principal for a term not exceeding 5 years, and the upper limit of the loan scale eligible for interest subsidy for a single household shall be 1 million yuan.

(3) Sharing ratio. Interest subsidy funds shall be borne by the central finance and local finance at 90% and 10% respectively. Among them, the sharing ratio for provincial and sub-provincial finance shall be independently determined by the provincial finance authorities in light of actual conditions.

(4) Handling banks. All banks that conduct commercial personal housing loan business may handle the interest subsidy business for resident home purchase loans in accordance with policy provisions.

II. Fund Management

(1) Working mechanism. The allocation of interest subsidy funds shall adopt the method of "advance allocation plus settlement." Provincial finance authorities shall establish a "province-to-province" working mechanism with provincial branches of nationwide banks, head offices of local corporate banks, head offices of private banks and domestic headquarters of foreign banks (hereinafter collectively referred to as provincial offices of handling banks), shorten the working chain, and efficiently carry out the advance allocation, review, settlement and clearing of interest subsidy funds. If a handling bank has no provincial branch, its head office shall coordinate with the provincial finance authorities of the place where it is registered.

(2) Operating procedures. The provincial offices of handling banks shall submit applications for interest subsidy funds for the current year to the local provincial finance authorities in the first month after the introduction of the policy and before the end of January each year. The provincial finance authorities shall, in the second month after the introduction of the policy and before the end of February each year, summarize the interest subsidy fund applications of the provincial offices of handling banks and report them to the Ministry of Finance. The Ministry of Finance shall, based on the annual budget arrangement, advance central fiscal interest subsidy funds to provincial finance authorities, and provincial finance authorities shall organize and ensure local interest subsidy funds. In light of the implementation of the policy, the Ministry of Finance and provincial finance authorities, and provincial finance authorities and provincial offices of handling banks, shall settle interest subsidy funds separately. After the expiration of the interest subsidy period, fiscal authorities and handling banks shall conduct clearing of interest subsidy funds.

III. Organization and Implementation

(1) Consolidate primary responsibilities. Handling banks shall, in light of online signing and filing and housing purchase contracts and other relevant circumstances, perform interest subsidy eligibility review; strictly fulfill loan review responsibilities and do a good job in entrusted payment of loan funds, classified statistics, data monitoring and other aspects; establish a reporting and statistical system, and submit loan issuance and interest subsidy fund use to the Ministry of Finance and provincial finance authorities on a monthly basis, with copies to the People's Bank of China and the National Financial Regulatory Administration; when signing loan contracts, inform borrowers of the subsidy ratio, subsidy period, subsidy amount and other elements in an appropriate manner to ensure borrowers know the policy content; when collecting interest on a monthly basis, automatically deduct the corresponding subsidy amount to achieve "enjoyment without application," and inform borrowers of their enjoyment of national policy through mobile text messages, APP messages and other means.

(2) Strengthen coordination among all parties. The Ministry of Finance shall take the lead in organizing implementation, do a good job in budget management, and strengthen supervision over the use of funds. Financial management departments shall, according to the division of responsibilities, do a good job in real estate credit management and guide and urge handling banks to carry out loan issuance and interest subsidy work in accordance with laws and regulations. Provincial branches of the People's Bank of China shall share relevant policy implementation with provincial finance authorities and strengthen coordination between monetary policy and fiscal policy.

(3) Strengthen joint supervision. The Ministry of Finance, together with the National Financial Regulatory Administration, shall in due course organize local regulatory bureaus of the Ministry of Finance and regulatory bureaus of the National Financial Regulatory Administration to carry out joint spot checks. If it is discovered that interest subsidies are obtained or defrauded through irregular operations, the interest subsidy funds shall be recovered. Banks that collude with customers in irregular operations shall be strictly held accountable, and if the circumstances are serious, they shall not continue to handle relevant interest subsidy business.

Ministry of Finance

People's Bank of China

National Financial Regulatory Administration

September 29, 2026