On June 26th, multiple departments including the Beijing Municipal Commission of Housing and Urban-Rural Development and the Beijing Branch of the People's Bank of China issued a notice regarding policies to optimize the stable and healthy development of the fabric industry. The notice clarifies the implementation of adjustments in the minimum down payment ratio and interest rate floors for commercial personal housing loans, adjusts the minimum down payment ratio for personal housing loans under the housing provident fund, supports housing needs for families with multiple children, increases the provident fund loan limit for purchasing green buildings, and organizes activities for housing 'exchange old for new' policies.

In terms of down payment ratios and interest rates, for the purchase of the first home, the minimum down payment ratio will be adjusted to no less than 20%, and the lower limit of the loan interest rate will be adjusted to no less than the market-quoted interest rate (LPR) for the corresponding term minus 45 basis points, with the adjusted lower limit of the mortgage interest rate for terms over five years currently at 3.5%.

For the purchase of a second home, the policy will be divided based on whether it is within or outside the Fifth Ring Road. For homes within the Fifth Ring Road, the minimum down payment ratio will be adjusted to no less than 35%, and the lower limit of the loan interest rate will be adjusted to no less than the LPR for the corresponding term minus 5 basis points, with the adjusted lower limit of the mortgage interest rate for terms over five years currently at 3.9%. For homes outside the Fifth Ring Road, the minimum down payment ratio will be adjusted to no less than 30%, and the lower limit of the loan interest rate will be adjusted to no less than the LPR for the corresponding term minus 25 basis points, with the adjusted lower limit of the mortgage interest rate for terms over five years currently at 3.7%.

The notice also proposes to support housing needs for families with multiple children. For families with two or more children who hold Beijing household registration, the purchase of a second home will be recognized as a first home in personal housing loans.

Additionally, Beijing will support the use of housing provident fund loans to purchase two-star or above green buildings, prefabricated buildings, or ultra-low energy buildings, with an increased loan limit support of up to 400,000 yuan.

In terms of housing 'exchange old for new' activities, the Beijing Real Estate Association and the Real Estate Brokerage Industry Association will build a docking platform, encouraging more development enterprises and brokerage institutions to participate, providing residents with better services. For residents selling old houses to buy new ones, real estate brokerage institutions will prioritize promoting old house transactions, and after the successful sale of the old house, the related deposit will be converted into the down payment for the new house. If the old house is not successfully sold within a certain period, the development enterprise will unconditionally refund the deposit.

The above policies will be implemented from June 27, 2024.