The big move is coming! The down payment ratio for buying a house continues to decline, with commercial loans falling to 15% for first homes and 25% for second homes.
At noon on May 17, the official website of the central bank issued the Notice of the People's Bank of China on Reducing the Interest Rate of Personal Housing Provident Fund Loans, the Notice of the People's Bank of China on Adjusting the Interest Rate Policy of Commercial Personal Housing Loans, and the Notice of the People's Bank of China and the State Financial Supervision and Administration Administration on Adjusting the Policy of Minimum Down Payment Ratio for Personal Housing Loans.
Since I entered the industry in 2013, Putian has never had a down payment of less than 20%, and this time it broke 20%, which is also unprecedented, and the provident fund loan interest rate has officially entered the prefix of 2! It was so unexpected. This strength can be imagined...... Next, let's take a closer look at today's blockbuster policy.
.01
CPF interest rates continue to fall
2.85% for the first set, 3.325% for the second set
The official website of the central bank issued the Notice of the People's Bank of China on Reducing the Interest Rate of Personal Housing Provident Fund Loans.
The central bank decided to reduce the interest rate of personal housing provident fund loans by 0.25 percentage points from May 18, 2024, and the interest rates of the first set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years will be adjusted to 2.35% and 2.85% respectively, and the interest rates of the second set of personal housing provident fund loans for less than 5 years (including 5 years) and more than 5 years will be adjusted to not less than 2.775% and 3.325% respectively.
.02
Cancellation of first and second homes
The lower limit of the mortgage interest rate policy
At the same time, the central bank issued the Notice of the People's Bank of China on Adjusting the Interest Rate Policy of Commercial Personal Housing Loans.
The central bank said that 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.
In the event of any inconsistency between the previous relevant provisions and this Notice, this Notice shall prevail.
.03
The minimum down payment ratio has been significantly reduced
Commercial loan for first home reduced to 15%
Second homes down to 25%
In addition, the People's Bank of China and the State Administration of Financial Supervision jointly issued the Notice of the People's Bank of China and the State Administration of Financial Supervision on Adjusting the Policy of Minimum Down Payment Ratio for Individual Housing Loans.
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 adjusted to not less than 15%, and the minimum down payment ratio for commercial personal housing loans for second houses is 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.