Shanghai Commercial Personal Housing Loan Rates No Longer Differentiate Between First-Home and Second-Home Purchases

To implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, adapt to new changes in the supply and demand relationship of Shanghai's real estate market, meet people's new expectations for high-quality housing, and promote the stable and healthy development of Shanghai's real estate market, based on the People's Bank of China's policies on commercial personal housing loan rates and the regulatory requirements of the Shanghai municipal government, the pricing mechanism for commercial personal housing loan rates in Shanghai is now adjusted as follows:

1. In terms of the interest rate pricing mechanism arrangement, commercial personal housing loan rates in Shanghai will no longer differentiate between first-home and second-home purchases.

2. According to the current situation of Shanghai's real estate market and the regulatory requirements of the Shanghai municipal government, the Shanghai Market Interest Rate Pricing Self-Discipline Mechanism guides banking financial institutions to implement the adjustments effectively, standardize market competition behavior, and maintain market order.

3. Banking financial institutions should reasonably determine the specific interest rate level for each loan based on factors such as their operational conditions and customer risk profiles.

4. Banking financial institutions should effectively carry out policy promotion, explanation, and consultation services, legally and compliantly protect borrowers' contractual rights and consumers' legitimate rights and interests, and ensure that related work proceeds smoothly and orderly.