How it is calculated
Monthly rate r = annual rate ÷ 12, number of payments n Equal installments (等额本息) payment = principal × r × (1+r)^n ÷ ((1+r)^n − 1) Equal principal (等额本金) payment in month k = principal ÷ n + outstanding principal × r Commercial loan rate = 5-year-plus LPR + spread (bp, fixed in the contract)
2026 reference rates
| Item | Rate | Basis |
|---|---|---|
| 1-year LPR | 3.0% | Published 2026-10-20 (unchanged since May 2025) |
| 5-year-plus LPR | 3.5% | Benchmark for most home loans |
| Housing fund loan, first home, up to 5 years | 2.1% | From 2025-05-08 |
| Housing fund loan, first home, over 5 years | 2.6% | From 2025-05-08 |
| Housing fund loan, second home | Up to 5 years ≥ 2.525% · over 5 years ≥ 3.075% | Floors from 2025-05-08 |
Actual commercial rates are set above or below the LPR depending on city, bank and whether it is a first home. Under a September 2024 notice from the PBOC and the financial regulator, the national minimum down payment for commercial loans is 15% with no distinction between first and second homes; PBOC provincial branches and local regulators may set higher floors for individual cities.
Example: 1 million yuan over 30 years
At the same rate, equal principal costs more at the start but about 70,000 yuan less interest overall. 3.1% is an example rate; check the actual rate with your bank.
- Commercial 3.1%, equal installments: 4,270.16 yuan a month, about 537,259 yuan total interest
- Commercial 3.1%, equal principal: 5,361.11 yuan in the first month → 2,784.95 yuan in the last, about 466,292 yuan total interest
- Housing fund 2.6%, equal installments: 4,003.40 yuan a month, about 441,223 yuan total interest
Combined loans, prepayment and existing loans
- Combined loan (组合贷款): The part above the housing fund loan limit is borrowed commercially. Calculate the two loans separately and add them (use this calculator twice).
- Prepayment (提前还款): After a partial prepayment, shortening the term cuts total interest more, while lowering the monthly payment eases the monthly burden. Procedures and fees vary by bank.
- Existing loan rates (存量房贷利率): LPR-linked floating loans reset on the contractual repricing date (usually 1 January or the loan anniversary) to the LPR then plus the spread. For existing housing fund loans, a rate cut applies in most cities from 1 January of the following year; the timing differs by city.
- Down payment (首付): Housing fund loan down payments also differ by city; check with the local housing provident fund center.
FAQ
If the LPR falls, does my rate change immediately?
A floating-rate loan changes on its next repricing date. The spread (bp) agreed in the contract stays the same for the life of the loan; only the LPR it is based on changes.
How much can I borrow from the housing fund?
It depends on the city's maximum, your fund balance, how long you have contributed and whether it is your first home. Check the rules of your city's housing provident fund center.
Equal installments or equal principal?
Equal installments keep the payment constant and are easier to plan; equal principal costs more at first but less interest overall. This calculator only compares the two and does not recommend either. Decide based on your income pattern.