China: China's mortgage subsidy for first-home buyers takes effect.

Storyline China's mortgage subsidy for first-home buyers takes effect China's mortgage interest subsidy for first-home buyers took effect on October 1. Eligible families taking out a new commercial mortgage on a first home - either new or second-hand - will receive an annualized 1-percentage-point subsidy. The home must be under 120 square meters and priced below 1.5 million yuan. The subsidy covers up to 1 million yuan in loan principal for up to five years. The definition of a "first home" will follow existing local policies. Replacing an existing loan with a new commercial mortgage does not qualify for the subsidy. Major Chinese banks including ICBC, Agricultural Bank of China, Bank of China and China Construction Bank stated that borrowers do not need to apply — eligible loans qualify automatically. Industry experts say the interest subsidy policy focuses on first-home buyers' essential needs, prioritizing support for ordinary families purchasing smaller and lower-priced homes. The policy is expected to benefit a broad range of households. [Restrictions: No access Chinese mainland]