Housing provident fund loan lowered for first homes

Shenzhen homeowners who have mortgages from the city’s housing provident fund will benefit from reduced interest rates for first homes from Jan. 1. For loans exceeding five years, the interest rates will be lowered to 2.85%, and for loans of five years or less, the rates will be adjusted to 2.35%. The adjustment, effective for mortgage loans issued prior to May 18, 2024, will be automatically implemented without requiring individual applications.

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With reductions in commercial mortgage rates in recent years, there is a need to promptly adjust the interest rates for loans provided by the housing provident fund. This step is crucial to maximize the inclusive nature of housing provident fund loans and alight them effectively with current market conditions.