China to subsidise interest on eligible first-home mortgages

China will subsidise interest payments on new commercial mortgages for eligible first-home buyers nationwide from October 1, the finance ministry, central bank and financial regulator said on Tuesday.

The government will provide an annual interest subsidy of 1 percentage point for up to five years on qualifying loans, with the subsidised portion capped at 1 million yuan (HK$1.17 million) per household, a statement released by the finance ministry showed.

Eligible homes must have a floor area of no more than 120 square metres and a purchase price of no more than 1.5 million yuan per household, the statement showed.

Reuters

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