Individual housing provident fund loan interest rates have been lowered, the total interest on a 30-year, 1 million loan will be reduced by nearly 50,000 yuan.

The Governor of the People's Bank of China, Pan Gongsheng, announced at a press conference on May 7th that the personal housing provident fund loan interest rate would be reduced by 0.25 percentage points. The interest rate for first homes with a term of more than five years would be reduced from 2.85% to 2.6%, with other term rates adjusted accordingly. It is reported that this adjustment applies to both new and existing housing provident fund loans. After this rate cut, new housing provident fund loans will be subject to the new rate, while existing loans will see a rate reduction starting from January 1, 2026. This will directly reduce the interest burden for borrowers, equivalent to increasing residents' income and enhancing consumption capability. For example, a first-time personal housing provident fund loan of 1 million RMB with a 30-year term and equal monthly installment repayment will see the monthly payment reduced from 4,136 RMB to 4,003 RMB, resulting in a saving of approximately 133 RMB per month and a total interest payment reduction of about 47,600 RMB.