Starting next year, the interest rate for housing provident fund loans will officially be lowered.

According to the notice issued by the People's Bank of China on May 7, 2025, the personal housing provident fund loan interest rates will be reduced by 0.25 percentage points starting from May 8, 2025. The interest rates for first-time personal housing provident fund loans for less than 5 years and over 5 years will be adjusted to 2.1% and 2.6% respectively. The interest rates for second-time personal housing provident fund loans for less than 5 years and over 5 years will be adjusted to 2.525% and 3.075% respectively. For personal housing provident fund loans issued before May 8, 2025, the adjusted interest rates will be implemented starting from January 1, 2026. For example, for a regular family loan of 1.2 million yuan with a loan term of 30 years and equal principal and interest repayment method, after the interest rate adjustment, the interest saved for the first home is 57,100.85 yuan, and for the second home, it is 59,070.01 yuan. For a larger family loan of 1.56 million yuan with a loan term of 30 years and equal principal and interest repayment method, after the interest rate adjustment, the interest saved for the first home is 74,229.62 yuan, and for the second home, it is 76,789.24 yuan.