On April 19, Taizhou, Changzhou, Huai'an, Nantong and other places in Jiangsu Province phased out the lower limit of the interest rate of commercial personal housing loans for the first house, allowing banks to independently determine the interest rate of commercial personal housing loans for the first house, which attracted market attention.
Recently, many cities across the country have "officially announced" the cancellation of the lower limit of the interest rate on the first home loan. Which cities have implemented relevant policies, what benefits can buyers get, how long can the phased cancellation last, and what impact will it have on the local property market?
Q
Which cities have implemented these policies?
According to incomplete statistics from Guojin Securities, more than 40 cities have phased out the lower limit of the first home loan interest rate.
At the beginning of April, Fuzhou, Fujian, Wuhu, Anhui, Jining, Qingdao, Yantai in Shandong, Nanchang, Ganzhou, Jiujiang and Xinyu in Jiangxi, Shenyang, Benxi, Dandong, Jinzhou, Liaoyang in Liaoning, Chaozhou, Shanwei and other places in Guangdong "officially announced" the cancellation of the lower limit of the interest rate on the first home loan.
According to the news of "Netinfo Guangdong" on April 12, 15 eligible cities in Guangdong Province have cancelled the lower limit of the first home loan interest rate, including Chaozhou, Shanwei, Jiangmen, Foshan, Dongguan, Shaoguan, Zhanjiang, Zhongshan, Shantou and other cities. Up to now, the mainstream interest rate of the first home loan in 15 cities in Guangdong has been implemented between LPR-40BP and LPR-70BP.
Q
How much do buyers get?
Overall, the weighted average interest rate of personal housing loans is expected to decline further, which is conducive to reducing the loan cost of home buyers and meeting the rigid housing purchase needs of residents and diversified and improved housing needs.
Take a loan of 1 million yuan, which will be repaid in 30 years, and the repayment of equal principal and interest will be taken as an example:
If calculated according to the national unified lower limit of the first home loan interest rate LPR-20BP (3.75%), the buyer needs to repay about 4,631 yuan per month, with a total interest of about 667,200 yuan.
If calculated according to the loan interest rate level of LPR-50BP (3.45%), the buyer needs to repay 4,462 yuan per month, with a total interest of about 606,500 yuan.
Compared with the two, the latter is about 169 yuan less per month, and the total interest is about 60,700 yuan less.
Q
What is the impact on the local property market?
The cancellation of the lower limit of the interest rate policy for the first home loan in various places originates from the dynamic adjustment mechanism of the first housing loan interest rate policy established in the mainland. In accordance with the principles of marketization and rule of law, banking institutions can independently determine the interest rate level of the first home loan based on their own business conditions, customer risk profiles and other factors.
Source: Chinese government website
The implementation of the new policy will further optimize the management of real estate finance and broaden the space for independent pricing of mortgage interest rates. The adjustment of the loan interest rate to "no lower limit" means that there is more room for the mortgage interest rate to be lowered, which will help the local housing market to be active.
Q
How long does a phased cancellation last?
When the local real estate market price index reaches certain conditions, the implementation of the lower limit of the unified interest rate will be resumed according to the requirements.
According to the dynamic adjustment mechanism of the interest rate policy for the first set of housing loans, for cities that have adopted a phased reduction or cancellation of the lower limit of the local commercial personal housing loan interest rate for the first house, if the sales price of newly built commercial residential buildings rises for three consecutive months month-on-month and year-on-year during the subsequent assessment period, the implementation of the national unified lower limit of the commercial personal housing loan interest rate for the first home shall be resumed from the next quarter.
Source: Chinese government website
Reviewer: Zhao Bai Zhinan Editor: Ya Wenhui Proofreader: Zhang Lijing Producer: Zhang Nan Signed: Fei Yangsheng