On May 17, the People's Bank of China issued a notice that from May 18, 2024, the interest rate of personal housing provident fund loans will be lowered by 0.25 percentage points, the interest rate of the first set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to 2.35% and 2.85% respectively, and the interest rates of the second set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to not less than 2.775% and 3.325% respectively.
At present, Guangzhou, Shanghai, Beijing, Shenzhen, Chongqing, Liaoning, Hubei, Henan, Jiangsu, Jiangxi, Chengdu, Anhui and other places have announced the reduction of housing provident fund loan interest rates.
Guangzhou
On May 17, the WeChat official account of the Guangzhou Housing Provident Fund Management Center issued a notice on the "Reduction of Personal Housing Provident Fund Loan Interest Rate", announcing that the new interest rate will be implemented for personal housing provident fund loans issued from May 18, 2024; For personal housing provident fund loans that have been disbursed before May 18, 2024, the new interest rate will be implemented from January 1, 2025 according to the loan contract.
Shanghai
On May 18, the WeChat official account of "Shanghai Provident Fund" issued the "Notice on Adjusting the Interest Rate of Personal Housing Provident Fund Loans in the City", stating that loans issued after May 18, 2024 (inclusive) will implement the adjusted interest rate; For loans disbursed before May 18, 2024, the original loan contract interest rate shall be implemented if the loan term is 1 year, and the adjusted interest rate shall be implemented from January 1, 2025 for loans with a loan term of more than 1 year.
Beijing
On May 18, the WeChat official account of "Beijing Provident Fund" issued a notice on the "Reduction of Personal Housing Provident Fund Loan Interest Rate", announcing that from May 18, 2024, the interest rate of personal housing provident fund loans will be reduced by 0.25 percentage points.
Shenzhen
On May 18, the WeChat public account of "Shenzhen Provident Fund" issued a notice on the "Shenzhen Housing Provident Fund Loan Interest Rate Reduction". For the loans that have been issued, the notice clearly states that according to Article 23 of the Regulations on the Administration of Housing Provident Fund Loans in Shenzhen, after the issuance of provident fund loans, if the interest rate of the national provident fund loan is adjusted, the provident fund center shall adjust the loan interest rate on a quarterly basis. For personal housing provident fund loans that have been issued in Shenzhen before May 18, 2024, the adjusted interest rate will be implemented from July 1, 2024.
For undisbursed loans, the notice clarifies that the adjusted interest rate will be implemented for personal housing provident fund loans applied before May 18, 2024 and not disbursed, as well as personal housing provident fund loans applied after May 18, 2024 (inclusive).
The interest rate of the housing provident fund personal housing loan was reduced by 0.25 percentage points, how much benefit can the depositor get? The relevant person in charge of the Provident Fund Management Department of the Ministry of Housing and Urban-Rural Development said on May 18 that the new policy will provide greater support to depositors to solve housing problems. Taking the first housing provident fund personal housing loan with an amount of 1 million yuan and a term of 30 years as an example, if you choose the equal principal and interest repayment method, the monthly payment will be reduced from 4270.16 yuan to 4135.57 yuan, a decrease of about 135 yuan, and the total interest expense will be reduced by 48,500 yuan. The benefits for buyers are substantial.
According to reports, the scope of the loan interest rate adjustment includes both the newly issued housing provident fund personal housing loans and the existing housing provident fund personal housing loans. For personal housing provident fund loans that have been disbursed before May 18, 2024, the new interest rate will be implemented from January 1, 2025. New personal housing provident fund loans issued after May 18, 2024 (inclusive) will be directly executed according to the adjusted new interest rate. The Ministry of Housing and Urban-Rural Development said that it will guide the urban housing provident fund management center to do a good job of policy convergence in accordance with the regulations to ensure that depositors can enjoy policy preferences as soon as possible.
China Business Daily is synthesized from local housing provident fund management centers, CCTV finance, People's Daily Online, and CCTV news