Personal housing provident fund loan interest rate cut 1 million yuan 30-year loan total interest will be reduced by nearly 50,000 yuan

On May 7th, Pan Gongsheng, Governor of the People's Bank of China, announced at the press conference of the State Council Information Office on May 7th that the interest rate of personal housing provident fund loans will be reduced by 0.25 percentage points, and the interest rate of first homes over five years will be reduced from 2.85% to 2.6%. Other term interest rates will be adjusted simultaneously. It is reported that the interest rate adjustment range of housing provident fund loans includes both newly issued housing provident fund loans and existing housing provident fund loans. After the interest rate reduction, the new interest rate will be implemented for newly issued housing provident fund loans. < b > The interest rate of previously issued housing provident fund loans will be reduced from January 1, 2026. This can directly reduce the interest burden of borrowers, which is equivalent to increasing residents' income and improving their spending power. Taking the first set of personal housing provident fund loans with an amount of 1 million yuan, a term of 30 years, and equal principal and interest repayment as an example, the monthly payment will be reduced from 4,136 yuan to 4,003 yuan, a decrease of about 133 yuan, and the total interest expenditure will be reduced by about 47,600 yuan.