The People's Bank of China announced that, effective May 8, 2025, it will lower the interest rate on individual housing provident fund loans by 25 basis points.
For first-time homebuyers, the new rates will be 2.1% for loans of five years or less (inclusive) and 2.6% for loans over five years.
For second-home purchases, the rates will be no lower than 2.525% and 3.075%, respectively.
Following the rate cut, newly issued housing provident fund loans will adopt the adjusted rates. For existing loans, the new rates will take effect starting January 1, 2026.
The adjustments are expected to save homebuyers' interest payments by more than 20 billion yuan (about 2.8 billion U.S. dollars) per year, PBOC governor Pan Gongsheng told a press conference.
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