According to what the Chinese Ministry of Finance revealed on September 29, China will, from October 1st, implement interest subsidies when residents purchase homes using newly financed commercial individual housing loans. The aim is to reduce the burden on home buyers and to stimulate the realization of housing demand based on the actual needs of urban and rural residents.

This interest subsidy policy focuses on real demand buyers purchasing a home for the first time, and primarily supports the new purchase of small to medium-sized and relatively low-priced homes by ordinary households. Eligible homes have a construction area of 120 square meters or less per household and a purchase price of 1.5 million yuan (approximately 3.523 million yen) or less.

The maximum loan amount eligible for interest subsidies is 1 million yuan (approximately 2.348 million yen), and the financial authorities will subsidize interest equivalent to 1 percentage point per annum. Calculated at the current commercial individual housing loan interest rate for first-time home buyers, this is equivalent to a reduction of approximately one-third of the interest rate. The interest subsidy period is a maximum of 5 years. According to calculations, for a 1 million yuan commercial individual housing loan with a long repayment period, this policy will cumulatively reduce the borrower's interest payment burden by up to approximately 50,000 yuan (approximately 1.17 million yen).

The policy implementation period is provisionally set for one year. (Source: CGTN Japanese)