Shanghai Commercial Property Minimum Down Payment Reduced to 30% | Reporter On-site Investigation: Banks Implement at Different Paces, Comprehensive Approval Required Based on Purchase Location and Income

On March 16, the People’s Bank of China Shanghai Headquarters officially released a notice titled “Shanghai Adjusts Minimum Down Payment Ratio for Commercial Property Purchases” (hereinafter referred to as the “Notice”). The Notice states that starting from March 16, 2026, the minimum down payment ratio for commercial properties in Shanghai (including “mixed-use residential and commercial” properties) will be adjusted to no less than 30%. The Notice also mentions that local banking institutions should reasonably determine the specific down payment ratio for each loan based on their operational conditions, customer risk profiles, and other factors.

On March 17, a reporter from Daily Economic News visited multiple bank branches and loan departments in Shanghai to inquire as a homebuyer and found that different banks are at varying stages of implementing this policy. Some banks have already adjusted the minimum down payment ratio for commercial properties to 30%, but emphasized that the actual loan approval depends on factors such as the purchase area, the buyer’s credit history, and employment status. Several other bank branches stated they have not yet received any related notifications.

Additionally, the reporter learned that most banks in Shanghai are currently applying an interest rate of LPR + 60 basis points for commercial property loans, which is 4.1% for terms over five years.

Banks are at different stages of implementation; some branches have not yet received notices

“Yesterday (the 16th), we received the notice that the minimum down payment ratio is now 30%, and we have seen it too, but the specific approval for commercial property loans still needs to consider factors like the purchase area, credit status, and employment stability,” a customer manager at a branch of China Construction Bank told the reporter. The bank has already implemented the 30% minimum down payment ratio as required by the policy, but currently, approval is more stringent. “From a cautious perspective, we generally still prefer a 50% down payment.”

The customer manager explained that the maximum term for commercial property loans is 10 years, and the interest rates are also higher, which results in greater monthly repayment pressure compared to housing mortgages. Therefore, multiple factors need to be considered comprehensively. He admitted that based on previous clients who took out commercial property loans, many do not meet the qualifications for a reduced down payment.

A staff member at a branch of Industrial Bank also said that approval requirements for commercial property loans are relatively stricter, such as for purchasing shops, which must be street-front, standalone shops. Personal repayment ability is also important, with a requirement that the monthly repayment-to-income ratio not exceed 50%.

Compared to housing mortgages, commercial property loans are not mainstream in bank lending. During the inquiry, many bank branches stated they do not handle such business, and even those that do handle it do so infrequently. Some branches said they have not yet received any notice regarding the down payment ratio adjustment.

“The policy to lower the down payment to 30% just came out, and we haven’t received any notice yet. We handle this type of business infrequently,” a staff member at an Industrial Bank branch said. If someone applies now, whether to implement the 30% down payment policy needs to be approved by the head office.

A loan department staff member at a branch of Shanghai Pudong Development Bank also mentioned that they noticed the policy announced on the 16th to adjust the down payment ratio for commercial properties, but the bank has not yet received any related notice. “We do very few commercial property deals now, and we haven’t received any notice. We haven’t seen any related news in the group chat. If we haven’t implemented it yet, we will still follow the original ‘50% loan, 50% down payment’ approach.”

Many regions have already adjusted the minimum down payment for commercial properties to 30%

In January this year, the People’s Bank of China and the China Banking and Insurance Regulatory Commission issued a notice that the minimum down payment ratio for commercial property (including “mixed-use residential and commercial” properties) loans would be adjusted to no less than 30%. They also required that provincial branches of the People’s Bank of China and local offices of the China Banking and Insurance Regulatory Commission determine the minimum down payment ratio for each city within their jurisdiction based on local government regulation requirements, following the principle of city-specific policies, on the basis of the nationwide minimum.

Subsequently, Inner Mongolia, Sichuan, Shandong, Guangdong, Jilin, Chongqing, and other regions announced adjustments to the commercial property down payment ratio to 30%. The Shanghai adjustment is also implemented in accordance with the above notice.

Wu Zewei, a special researcher at Su Commercial Bank, told the reporter that the adjustment of the minimum down payment ratio for commercial property loans in Shanghai marks a precise optimization of the relevant regulatory policies on the real estate market. The core significance lies in lowering the barrier to purchasing commercial properties, releasing reasonable demand, and effectively revitalizing existing commercial and office properties, thereby promoting healthy and sustainable development of the real estate market. This measure helps stabilize market expectations and boost confidence among market participants.

“At the same time, the policy emphasizes that financial institutions should implement differentiated pricing based on their own operational and customer risk profiles. This reflects an effort to activate the market while still prioritizing risk prevention, requiring banks to carefully assess during implementation to support reasonable homebuying needs and maintain financial stability, guiding funds more efficiently toward the real economy,” Wu Zewei added.