How Mortgages Work in China
A Chinese home loan (住房贷款) is a mortgage secured on the property, repaid in equal monthly instalments over a term that runs up to 30 years — shorter if the lender's age rules cap it, since banks typically want the loan repaid before retirement. The structure this calculator models is the standard repayment mortgage: each instalment covers the month's interest plus a slice of principal, so the balance falls every month and reaches zero in the final one.
With the example inputs — a ¥1,500,000 property, a 30% down payment and the illustrative 4.50% rate over 30 years — the loan is ¥1,050,000 and the repayment about ¥5,320 a month, with roughly ¥865,000 of interest across the term. Change the rate to the one your lender actually quotes and every figure updates instantly, including the year-by-year schedule.
Down Payment Floors
China sets national minimum down-payment floors that have moved with the property cycle. In May 2024 the national floor was cut to 15% for first homes and 25% for second homes; in late September 2024 the second-home floor was unified down to 15% as well. Cities and lenders may require more than the floor, and first-versus-second-home definitions vary by city and purchase history — so treat the percentage you enter (30% is just an example) as the figure your lender confirms for your situation.
Rate Structure: Base + Spread
Since the 2019 pricing reform, floating-rate mortgages are typically quoted as a reference rate plus a spread: the spread is fixed for the life of the loan, while the reference portion reprices on the repricing date agreed in the contract (commonly once a year). The Advanced panel mirrors this structure — type the reference rate and the spread from your quote and the calculator adds them. We deliberately never supply the reference rate itself: it moves with policy, and a calculator that hard-coded it would be wrong the day the policy moves. Existing borrowers should also note that the rate on an old contract can differ from what new borrowers are quoted.
Provident Fund Loans
Contributors to the Housing Provident Fund (住房公积金) may qualify for provident-fund loans, which charge lower rates than commercial mortgages, subject to contribution history and maximum-loan ceilings that vary by city. Many buyers combine the two: a provident-fund loan up to the local ceiling plus a commercial loan for the rest. This calculator models a single commercial-style loan — for a combination, run the two portions separately and add the repayments.
Costs This Calculator Does Not Include
Property transactions in China carry their own taxes and fees — deed tax (契税) on the purchase, agent commissions, mortgage registration charges and the like — which depend on the property, the city and your purchase history. They are deliberately kept out of the loan maths. If you want them tallied alongside, enter their total in the "Other Upfront Fees" field: the loan calculation stays untouched, and the results card shows the cash needed at signing as down payment plus those fees, clearly separated from the loan figures.
Related China Calculators
- China Loan Amortization Calculator — payment-by-payment schedule for any term.
- China Savings Calculator — building the deposit.
- China Compound Interest Calculator — how the deposit could grow.
Frequently Asked Questions
What is the minimum down payment for a home in China?
15% is a national policy floor for most buyers (first lowered in May 2024, with second homes unified to 15% that September). It is a minimum, not a norm: local authorities and lenders may apply different — usually higher — requirements depending on the city and your purchase history. Confirm your number with the lender.
What interest rate should I enter?
Enter the annual rate quoted by your bank for your specific loan. The 4.50% in the box is an illustrative example only — NOT a current Chinese market rate. Finance Atlas never pre-fills a market rate. If your quote is expressed as a reference rate plus a spread, use the Advanced panel.
What is the maximum mortgage term in China?
Up to 30 years is typical, but lenders apply age limits — commonly requiring the loan to be repaid before retirement age. Shorter terms cost far less interest; the year-by-year table makes the difference visible.
Does the calculator include deed tax and agent fees?
No — those depend on the property, city and your purchase history, so they are kept out of the loan maths. Add their total to the optional 'Other Upfront Fees' field if you want the cash-at-signing figure to include them.
Can I model early repayments?
Not in this version — it computes the equal-instalment schedule. Extra payments change the entire schedule and would need a dedicated calculator.
Disclaimer: Finance Atlas is not a licensed lender or financial adviser in the People's Republic of China. This calculator provides educational estimates only and does not constitute financial advice or a mortgage offer. Confirm exact figures with your lender.