In order to resolutely implement the positioning of "houses are for living in, not for speculation" and the long-term management mechanism of the real estate market, in the process of reforming and improving the loan market quoted interest rate (LPR) formation mechanism, ensure the effective implementation of regional differentiated housing credit policies and keep the level of personal housing loan interest rates basically stable. To safeguard the legitimate rights and interests of both borrowers and lenders, we hereby announce the following matters regarding the interest rates of newly issued commercial personal housing loans:

1. Starting from October 8, 2019, the interest rates of newly issued commercial personal housing loans will be based on the loan market quotation rate of the corresponding period in the last month as the pricing benchmark plus points. The value of points added should comply with national and local housing credit policy requirements, reflect the loan risk profile, and be fixed during the contract period.

2. When borrowers apply for commercial personal housing loans, they can negotiate with banking financial institutions to agree on an interest rate repricing cycle. The minimum repricing cycle is 1 year. On the interest rate repricing date, the pricing basis is adjusted to the loan market quote interest rate of the corresponding period in the last month. The interest rate repricing cycle and adjustment methods should be specified in the loan contract.

3. The interest rate of the first commercial personal housing loan shall not be lower than the market quoted interest rate of the loan of the corresponding period, and the interest rate of the second commercial personal housing loan shall not be lower than the market quoted interest rate of the loan of the corresponding period plus 60 basis points.

4. The provincial branches of the People's Bank of China should follow the principle of "policing according to the city" and guide the self-regulatory mechanism of market interest rate pricing in each province. Based on the unified national credit policy and the changes in the local real estate market situation, the lower limit of the interest rate increase for the first and second commercial personal housing loans in the jurisdiction shall be determined.

5. Banking financial institutions should clarify the interest rate pricing rules for commercial personal housing loans based on the lower limit of points added by each provincial market interest rate pricing self-regulatory mechanism, combined with factors such as the institution's operating conditions, customer risk status and credit conditions, and reasonably determine the specific point value for each loan.

6. Banking financial institutions should effectively carry out policy publicity, interpretation and consulting services, protect borrowers' contractual rights and consumer rights in accordance with laws and regulations, and strictly prohibit the provision of "re-mortgage" and "additional mortgage" services for personal housing loans to ensure that relevant work is carried out smoothly and orderly.

7. Before October 8, 2019, commercial personal housing loans that have been issued and commercial personal housing loans that have been signed but not issued will still be implemented in accordance with the original contract.

8. The interest rate for commercial housing purchase loans shall not be lower than the market quoted interest rate for loans of the corresponding period plus 60 basis points. The provident fund personal housing loan interest rate policy will not be adjusted for the time being.

(The original title of this article is "Announcement on Interest Rate Adjustments for New Commercial Personal Housing Loans")