On the 17th, the A-share real estate sector broke out again in the afternoon. As of the close, the real estate sector rose by more than 7%, and more than 20 real estate stocks such as Vanke, I love my home, Gemdale Group, and Poly Development rose to the limit.
On May 17, the People's Bank of China released three heavy news in succession.
First, 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; Second, the interest rate 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; Third, the minimum down payment ratio for the first house is adjusted to not less than 15%, and the second house is not less than 25%.
Industry analysts believe that the follow-up "low down payment + low commercial loan interest rate + low provident fund interest rate" purchase model will be formed, which will fully help the activity of the real estate sales market this year and also help to comprehensively boost the recovery of the real estate market.
01
The lowest down payment ever made to buy a house –
The down payment ratio for the first home is as low as 15%
The Notice of the People's Bank of China and the State Administration of Financial Supervision on Adjusting the Minimum Down Payment Ratio of Personal Housing Loans pointed out that for resident families who take out loans to purchase commercial housing, the minimum down payment ratio of commercial personal housing loans for the first house is adjusted to not less than 15%, and the minimum down payment ratio of commercial personal housing loans for second houses is adjusted to not less than 25%.
"In the past, the lowest down payment ratio for home purchases in the country was 20%, and now it has been reduced to 15%, which is the lowest down payment ratio in history, which is not only the most lenient policy in the history of mortgage lending, but also the most relaxed policy among all kinds of home purchase policies in recent years." Yan Yuejin, research director of the E-House Research Institute, believes that this is of great significance for the pull of housing loans, the rapid release and large-scale release of rigid demand and improved housing.
Chen Wenjing, director of market research at the China Index Research Institute, said that at present, many places across the country have reduced the down payment ratio to 20% and the second set to 30%, and only a few cities have a higher down payment ratio, such as the first set of down payment ratio of 30% in first-tier cities, and the second set of 40%-50%. After the central bank lowered the lower limit of the down payment ratio, it is expected that more cities will follow suit, and there is also room and expectation for lowering in first-tier cities.
"Guiding the actual down payment ratio and interest rate of personal housing loans to decline will help reduce the burden and cost of down payment on residents, and enhance the ability and willingness to buy houses. It will also directly reduce the borrower's residential mortgage expenditure and boost residents' willingness to consume. Zhang Dawei, chief analyst of Centaline Real Estate, believes that in general, the higher the energy level of the city, the higher the down payment ratio, and the impact of this adjustment on the first and second-tier cities is also greater.
Data map: The city is full of high-rise buildings. Photo by China News Service reporter Wang Dongming
02
CPF Loan Interest Rate –
The interest rate on the first home loan over 5 years has dropped to 2.85%
The Notice of the People's Bank of China on Reducing the Interest Rate of Personal Housing Provident Fund Loans pointed out that 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 rates 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.
Zhongxin Finance calculated that based on the repayment method of 1 million yuan of provident fund loan, 30 years of loan term and equal principal and interest, after the provident fund mortgage interest rate is reduced, the monthly monthly payment will be reduced by about 135 yuan, and the total repayment amount will be reduced by about 48,452 yuan.
Yan Yuejin said that under the condition that commercial bank loans continue to cut interest rates, the mortgage interest rate in many places has reached the level of 3.45%. At this time, there is not much difference between the interest rate difference with the provident fund loan, so the interest rate of the provident fund will be reduced.
"This has a positive effect on the subsequent application of provident fund loans in various places, the reduction of housing costs, and the support for housing consumption. In particular, the superimposed mortgage down payment policy will have a substantial impact on the subsequent home buyers' active entry into the market. Yan Yuejin said.
Data map: real estate under construction. Photo by China News Service reporter Zhang Bin
03
Business Loan Interest Rates –
Abolish the lower limit of mortgage interest rates at the national level
The Notice of the People's Bank of China on Adjusting the Interest Rate Policy for Commercial Personal Housing Loans pointed out 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.
Yan Yuejin said that for commercial mortgages, there used to be a minimum interest rate requirement, but now this lower limit of interest rates has been cancelled. In the future, even if the pricing is less than 3%, it can be decided by the banks themselves, which is also an important manifestation of the marketization of mortgage interest rates.
According to the data released by the central bank, as of the end of March, 75 of the country's 343 cities (prefecture level and above) have lowered the lower limit of the interest rate on the first home loan, and 64 have canceled the lower limit. According to the monitoring of the China Index, more than 20 cities announced that the lower limit of the first home loan interest rate will be phased out from April; In May, Nanjing and Hefei successively announced the cancellation of the lower limit of the interest rate for the first home loan.
Chen Wenjing mentioned that at present, some banks in some cities have implemented the first home loan interest rate to reach about 3.1%, and the central bank has canceled the lower limit of the mortgage interest rate at the national level, and the policy is favorable to extend to the second house, and it is expected that more cities will reduce the mortgage interest rate, and the space for the reduction of the mortgage interest rate in the first-tier and core second-tier cities is also expected to open.
Zhang Hongwei, founder of Jingjian Consulting, believes that in the next few months, some urban commercial banks may have a 9% or even 8% discount on mortgage interest rates, and the preferential and stimulating loan interest rates will further reduce the repayment pressure of home buyers, which will help to continuously activate and enhance the activity of market transactions.
Zhang Dawei also said that whether it is the down payment ratio or the lower limit of the interest rate, the document adjusts the lower limit of the national policy. In accordance with the principle of city-specific policies, each locality may determine the down payment ratio and the lower interest rate of the region on the basis of the national lower limit. Judging from the current situation, it is expected that most places in the country will not increase the weight, and the national lower limit will be directly implemented.
Source | China News Network