China Fund News Amman
The property market is super heavy!
Just now, the central bank announced that since May 18, the interest rate of personal housing provident fund loans will be lowered by 0.25 percentage points, in addition, the central bank has also canceled the lower limit of the interest rate policy of commercial personal housing loans for the first and second houses at the national level.
As of press time, urban construction development and Binjiang Group hit the daily limit, Tiandiyuan returned to the daily limit, and Hefei urban construction and the first shares followed up.
Let's take a look at the details:
Lower the down payment ratio
At noon on May 17, the People's Bank of China and the State Administration of Financial Supervision and Administration jointly issued a notice.
The notice proposes that for resident households who take out loans to purchase commercial housing, the minimum down payment ratio of commercial personal housing loans for the first house will be adjusted to no less than 15%, and the minimum down payment ratio for commercial personal housing loans for second houses will be adjusted to not less than 25%.
On this basis, the provincial-level branches of the People's Bank of China and the dispatched agencies of the State Financial Supervision and Administration independently determine the lower limit of the minimum down payment ratio for commercial personal housing loans for the first and second houses in each city under their jurisdiction in accordance with the requirements of urban regulation and control and in accordance with the principle of city-specific policies.
It is worth noting that, according to the notice issued in September last year, the central bank requires that for households that take out loans to purchase commercial housing, the minimum down payment ratio for commercial personal housing loans for the first house is not less than 20%, and the minimum down payment ratio for commercial personal housing loans for second houses is not less than 30%.
Reduction of interest rates on provident fund loans
The People's Bank of China issued a notice on lowering the interest rate of personal housing provident fund loans, starting from May 18, 2024, the interest rate of personal housing provident fund loans will be reduced by 0.25 percentage points, the interest rate of the first set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to 2.35% and 2.85% respectively, and the interest rate of the second set of personal housing provident fund loans below 5 years (including 5 years) and more than 5 years will be adjusted to not less than 2.775% and 3.325% respectively.
Removal of the lower limit on interest rates for first and second home loans
The People's Bank of China issued a notice on adjusting the interest rate policy for commercial personal housing loans. It mentions that the lower limit of the interest rate policy for commercial personal housing loans for the first and second houses at the national level will be abolished.
According to the notice, in order to implement the decisions and arrangements of the CPC Central Committee and the State Council, adapt to the new changes in the supply and demand relationship of the mainland real estate market, the new expectations of the people for high-quality housing, and promote the steady and healthy development of the real estate market, the relevant matters concerning the adjustment of the interest rate policy for commercial personal housing loans are hereby notified as follows:
1. Abolish the lower limit of the interest rate policy for commercial personal housing loans for the first and second houses at the national level.
2. Each provincial-level branch of the People's Bank of China, in accordance with the principle of city-specific policy, guides the self-discipline mechanism of market interest rate pricing at the provincial level, and independently determines whether to set the lower and lower limits of the interest rate of commercial personal housing loans in each city within their jurisdiction (if any) in accordance with the real estate market situation of each city within their jurisdiction and the regulation and control requirements of the local government.
3. Banking financial institutions shall, in accordance with the lower limit of interest rates (if any) determined by the self-discipline mechanism of market interest rate pricing at the provincial level, reasonably determine the specific interest rate level of each loan in combination with the operating conditions of the institution, customer risk status and other factors.
Editor: Xiao Mo
Review: Muyu