On May 15, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued a notice on issues relating to the adjustment of differentiated housing credit policies.

In order to adhere to the position that houses are for living and not speculation, fully implement the long-term real estate mechanism, support all regions to improve real estate policies starting from local realities, support rigid and improved housing demand, and promote the stable and healthy development of the real estate market, according to the relevant arrangements of the State Council, the following notice is now issued on matters relating to differentiated housing credit policies:

1. For households with loans to purchase ordinary self-occupied housing, the lower interest rate limit for commercial personal housing loans for the first housing unit was adjusted to no lower than the market quoted interest rate for the corresponding term loan market was reduced by 20 basis points, and the lower interest rate policy for commercial personal housing loans for the second housing unit was implemented in accordance with current regulations.

2. On the basis of a unified lower interest rate limit for loans across the country, the People's Bank of China and the Banking Insurance Regulatory Commission are dispatched to guide interest rate pricing self-regulation mechanisms in each provincial market in accordance with the principle of “city-specific policies”, and independently determine interest rate limits for commercial personal housing loans for the first and second housing units in each city within their jurisdiction in accordance with changes in the real estate market situation in each city within their jurisdiction and the regulatory requirements of the city government.