Mortgage Interest Subsidy Rolled Out: Gauging the Effect

On 29 September 2026, the Ministry of Finance, the PBoC, and the National Financial Regulatory Administration of China jointly issued a notice on interest subsidies for residential mortgages, effective 1 October, covering newly issued commercial mortgages for one year. This marks the first time central fiscal funds directly subsidize mortgage interest, extending property policy from the supply-side measures of 28 August to the demand side. Key elements: eligible buyers are first-time homebuyers (new or pre-owned homes) with floor area ≤120 sqm and purchase price ≤RMB1.5mn;