2 1 Shi Ji Jing Ji Bao Dao·2025-08-29 13:27Core Viewpoint - Shanghai's housing market has introduced new mortgage interest rate pricing mechanisms, eliminating the distinction between first and second home loans, aiming to optimize the real estate policy and stimulate market activity [2][3]. Group 1: New Mortgage Policies - Multiple banks in Shanghai have released announcements regarding the optimization of commercial personal housing loan interest rate pricing mechanisms, aligning with the recent government notification [2]. - The new policy states that the specific interest rate for each customer's commercial personal housing loan will be determined based on the Shanghai market interest rate pricing self-discipline mechanism, along with the bank's operational status and customer risk profile [2][4]. Group 2: Existing Loan Adjustments - For existing loans, banks will continue to follow the previous year's guidelines, allowing adjustments for certain second home loans that exceed the average interest rate of newly issued loans by more than 30 basis points [3]. - The weighted average interest rate for newly issued commercial personal housing loans in China was reported at 3.09% for Q2 2025, a decrease of 2 basis points from Q1, indicating potential for lower rates for second home loans in Shanghai [3][4]. Group 3: Regulatory Framework - The central bank's adjustments include four main points, notably the removal of the distinction between first and second home loan interest rates and the emphasis on banks to adhere to market conditions and government regulations [3][4]. - Banks are required to ensure compliance with the new policies, providing adequate communication and support to borrowers regarding their rights and the implications of the new interest rate structures [4].