CCTV News: According to the announcement of the People's Bank of China, from the 8th, the interest rate of personal housing provident fund loans will be officially lowered by 0.25 percentage points. In addition, the interest rate of the open market's 7-day reverse repurchase operation has also been lowered by 0.1 percentage point, which is expected to drive the loan market quotation rate (LPR) to fall by 0.1 percentage point. What impact will this have on the real estate market? Let’s take a look at the reporter’s interview in Beijing.

In a commercial housing project in Daxing District, Beijing, a property consultant is calculating the changes in the monthly mortgage payment for the home buyer after the interest rate cut. Mr. Fu has seen an improved housing of about 110 square meters before, with a total price of about 6.41 million yuan. Based on a 20% down payment, it requires a loan of about 5.13 million yuan.

This new house project is a three-star green building with low energy consumption. According to Beijing's policies, using provident fund loans to purchase can increase the loan amount by 400,000 yuan.

In addition to targeting green buildings, Beijing has also introduced provident fund loan support policies for purchasing housing in renovated old communities, extending the loan term, and covering more than 1.1 million old communities in Beijing. By the end of March this year, Beijing has issued 7,469 provident fund loans to support the renovation of old communities and 9,474 green building provident fund loans.

Li Tao, deputy director of the Beijing Housing Provident Fund Management Center, said: "The interest rates of existing loans issued before May 8, 2025 will be implemented in accordance with the new policy interest rates starting from January 1, 2026. The Beijing Provident Fund Center will focus on the implementation of existing policies and the introduction of incremental policies to further play the role of housing provident fund."

Many places increase support for housing provident fund policies to stimulate the vitality of the real estate market

Not only the loan interest rate has been reduced, but recently, many cities have also adjusted their housing provident fund policies, reducing the cost of buying a house by optimizing the number of housing units and increasing the loan amount of second-home housing units, and further stimulating the vitality of the real estate market. Keep watching.

On April 30, Wuhan, Hubei adjusted its housing provident fund loan policy, increasing the maximum amount of the second personal housing provident fund loan from 1 million yuan to 1.2 million yuan, which is consistent with the first house.

On May 9, the housing provident fund loan policy in Qingdao, Shandong Province was adjusted to increase support for families with multiple children.

Wang Shaolei, a staff member of the Policy Research Department of the Housing Provident Fund Management Center of Qingdao City, Shandong Province, said: "For families with multiple children who pay housing provident fund in our city, who purchase a second home for their family in the city of the purchased housing area, they can be recognized as the first home when applying for a provident fund loan and enjoy the corresponding loan preferential policies."

In addition, Changchun, Jilin also implemented a new housing provident fund policy on May 7, and raised a multi-child family with a second child and above will increase the loan amount by 40%. Experts said that in addition to the above cities, there are many places that enrich the use of housing provident fund by allowing cross-city housing purchase withdrawal and intergenerational mutual withdrawal.

News link: The interest rate of personal housing provident fund loans has been at the historical low

Over the years, the housing provident fund policy has been adjusted and optimized. At present, the interest rate of personal housing provident fund loans has been at the historical low. Let’s learn about it through a short video.

The housing provident fund system was first established in Shanghai in 1991, and was subsequently established and developed nationwide. In the 1990s, the interest rate of housing provident fund loans was as high as 8.1%. Before 2012, the interest rate of housing provident fund loans for more than five years fluctuated between 3.87% and 5.22% for a long time. On June 8, 2012, the housing provident fund loan interest rate was lowered from 4.9% to 4.7%. Since then, the interest rates of commercial personal housing loans have fluctuated many times with the real estate market situation, while the interest rates of housing provident fund loans have been lowered multiple times for more than ten years. The housing provident fund interest rate has been lower than the commercial personal housing loan interest rate during the same period. Last year, after the interest rate of commercial personal housing loans has been adjusted many times, the gap between the interest rate of housing provident fund loans has been very small.

Zhang Yu, associate professor of the Department of Finance, Guanghua School of Management, Peking University, said: "So, the adjustment of the provident fund loan interest rate is higher than the 7-day reverse repurchase rate. The 25 basis point reduction in the provident fund loan interest rate has also opened up the gap between the housing provident fund loan interest rate and the commercial mortgage interest rate."