Six Ministries Unveil Coordinated Housing Rescue Package in July 2026
In a coordinated breakthrough, six central ministries jointly rolled out a landmark housing policy package in July 2026, headlined by a nationwide cut in minimum down payment ratios — a move analysts are calling the most significant demand-side easing since the property downturn began.
Down Payment Ratios Slashed Nationwide
- First-home down payment: cut to a uniform 15% nationwide
- Second-home down payment: lowered to 25%
- On a 3-million-yuan home, a first-time buyer's down payment drops from 900,000 yuan to just 450,000 yuan — a saving of 450,000 yuan
Interest Rates at Historic Lows
The package aligns with the country's lowest-ever mortgage rates:
- First-home commercial loan rates: 3.05%–3.45%
- Housing provident fund first-home rate: reduced to 2.6%
- 5-year LPR held at a historic low of 3.5%
Relief on Existing Mortgages
The People's Bank of China is guiding commercial banks to bring stock mortgage rates down toward the level of newly issued loans, with an average reduction of about 0.5 percentage points — directly trimming monthly payments for tens of millions of households.
A Near-Halving of Borrowing Costs
Compared with the 2021 peak of 5.88%, today's mortgage costs have almost been cut in half. Combined with the lower down payment hurdle, the policy package sharply improves affordability and is widely interpreted by the market as a clear signal that Beijing is prioritizing a stable, healthy property sector recovery.