Shenzhen cut the individual housing provident fund loan interest rate by 0.25 percentage points on May 8. The move was announced by the Shenzhen Housing Provident Fund Management Center in alignment with the People's Bank of China's policy adjustment.
The Leyoujia Research Center estimates that under the new rates, a first-time homebuyer with two children opting for a pure provident fund loan of RMB 2.09 million under an equal principal and interest repayment plan could accumulate interest savings of RMB 99,400.
On May 7, the PBOC announced a reduction in personal housing provident fund loan interest rates by 0.25 percentage points, effective from May 8. Under the new policy, the rates for first-home loans with terms of five years or less and over five years are respectively 2.1 percent and 2.6 percent. For second-home loans, the rates for loans with terms of five years or less are set at no lower than 2.525 percent while the rates for loans with terms over five years are set at no lower than 3.075 percent.