National People's Congress delegate and 58.com Chairman and CEO Yao Jinbo: Suggest including interest on newly purchased housing loans in individual tax deductions

China Securities Journal, March 4 (Xue Yufei) — At this year’s National People’s Congress and Chinese People’s Political Consultative Conference, NPC Deputy and 58.com Chairman and CEO Yao Jinbo focused on the housing market sector. Yao Jinbo suggested that to activate and improve housing demand, the government should increase personal income tax deductions and include mortgage interest on newly purchased homes in the special additional deductions for individual income tax.

NPC Deputy and 58.com Chairman and CEO Yao Jinbo Source: Provided by interviewee

Yao Jinbo stated that the current “sell old, buy new” market is at a critical stage driven by strong policies. By lowering entry barriers and transaction costs, the liquidity of the second-hand housing market can be effectively stimulated, thereby facilitating the exchange between new and second-hand homes. While opening up the cycle, he recommended continuously improving the standards for “good houses” in the new housing market and adding information disclosure systems. The goal is to increase transparency, guide housing consumption from “having a place to live” to “living in a good house,” ensure consumers purchase homes that meet clear standards, and promote the real estate market’s healthy and stable growth with a balanced and sustainable development trajectory.

Yao Jinbo made three specific suggestions:

First, increase the scope of personal income tax deductions to effectively stimulate the transaction market by including mortgage interest on newly purchased homes in the special additional deductions for individual income tax. The deduction should cover interest on commercial and provident fund loans for homes purchased by the taxpayer or their spouse within China, with a standard monthly deduction of 3,000 yuan, for a maximum period of 240 months. This aims to reduce the mortgage burden for homebuyers, encourage middle- and high-income groups to enter the market, and boost improved housing demand.

Second, establish an information disclosure system for “good houses” to guide consumption upgrades. Focusing on safety, comfort, green features, and smart technology, it is recommended to create a full-process information disclosure mechanism: developers must submit a “Good House Information Disclosure Form” before applying for pre-sale permits, which will be reviewed by experts and assigned a unique number; verified indicators should be clearly listed, generating a QR code that is bound for life, ensuring traceability. Project information should be publicly displayed on online real estate platforms, mainstream platforms, and sales offices, allowing buyers to scan the code for complete details. Projects that are transparently disclosed and meet standards can be rewarded with incentives such as reduced pre-sale fund supervision ratios, preferential mortgage rates, and tax rebates, and prioritized for national awards.

Third, continue to promote and deepen the “mortgage transfer with collateral” service to lower the barriers for property exchanges. Persistently promote the “mortgage transfer with collateral” model in real estate registration, simplify transaction procedures, shorten transaction cycles, and reduce bridging loan costs. Encourage local authorities to improve supporting rules, break down barriers between different banks and loan types, and enable sellers to complete transfers, mortgage changes, and new loans without fully repaying existing mortgages. This will further reduce transaction difficulties and financial pressures for improved housing demand and enhance market liquidity.

【Author: Xue Yufei】 (Editor: Wen Jing)

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