How are Chinese mortgage payments calculated?

Most Chinese mortgages are equal-instalment (equal monthly payment) loans using the standard amortising formula M = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where r is the monthly rate. The rate is anchored to the 5-year-plus Loan Prime Rate (LPR), commonly around 4.2% in recent years, with first-home loans priced at or below LPR and second homes at a premium.

What is the minimum down payment in China?

Down-payment floors are set by policy and vary by city. A first home typically needs 15%–20% down, while a second home usually needs 25%–30%, and tier-1 cities such as Beijing and Shanghai often require more. The calculator flags when your down payment is below the policy minimum for the property type.

What debt-service ratio do Chinese banks use?

Lenders generally want your total monthly debt repayments to stay at or below about 50% of gross household income. If the ratio is higher, the bank will usually reduce the loan amount, ask for a larger down payment, or require a co-borrower.

What is the LPR and why does it matter?

The Loan Prime Rate is China's benchmark lending rate published monthly by the National Interbank Funding Center. Mortgages are quoted as the 5-year LPR plus or minus a fixed spread, so your effective rate moves with monetary policy at each repricing date.

Does this calculator store my data?

No. Every figure is computed locally in your browser and nothing is uploaded, so you can model your purchase privately.

China Mortgage Calculator

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This China mortgage calculator models a Chinese home loan the way a mainland bank does: an equal-instalment amortising repayment priced off the 5-year Loan Prime Rate (LPR), then checked against the two rules that decide whether you actually get the loan — the policy down-payment minimum for your property type and the debt-service ratio lenders apply.

How it works

The monthly repayment uses the standard amortising-loan formula:

M = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1)

where P is the loan, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. Your loan amount is the price minus the down payment, so a bigger deposit cuts both the monthly payment and the total interest.

China prices mortgages against the 5-year-plus LPR (commonly near 4.2% recently): a first home is usually offered at or just below LPR, while a second home carries a premium. The tool then checks two policy gates. The down-payment minimum is 15%–20% for a first home and 25%–30% for a second home, higher in tier-1 cities. The debt-service ratio is total monthly debt ÷ gross income, which Chinese lenders typically cap near 50%.

Example

A CNY 2,000,000 home with a 20% (CNY 400,000) down payment gives a CNY 1,600,000 loan. At 4.2% over 20 years the equal monthly instalment is about CNY 9,860/month, with roughly CNY 766,000 of total interest. On a CNY 25,000 gross monthly income that is a debt-service ratio of about 39% — comfortably inside the 50% guideline, so the loan would normally pass.

Notes

LPR spreads, down-payment floors and second-home premiums are policy-driven and change frequently, especially between tier-1 cities and smaller markets. Acquisition taxes (deed tax) and VAT on the seller sit on top of the price — model those with a China stamp duty / transfer tax tool. This calculator is an estimate, not a lending decision.