A taxpayer or his/her spouse or both who have purchased a home within China for the taxpayer or his/her spouse with an individual home loan taken alone or jointly by the taxpayer or his/her spouse from a commercial bank or from the Housing Provident Fund, the costs incurred from the payment of mortgage interest on any housing loan for first-time home buyers are deductible at the standard rate of 1,000 yuan per month in years when such mortgage interest is actually incurred, provided that the deduction period does not exceed the maximum of 240 months.

A taxpayer can only enjoy the deduction for housing loan interest on a housing loan for first-home buyers once. The costs of housing loaning interest may be deducted from the taxable income of either of the spouses upon mutual agreement between them, and the specific deduction method can not be changed within one tax year.