At noon on May 17, the central bank issued three documents in a row, and the down payment and loan interest rate for buying a house were lowered.
Specifically:
Minimum down payment of 15% for home purchase
The People's Bank of China and the State Administration of Financial Supervision and Administration issued a notice on adjusting the minimum down payment ratio of personal housing loans: 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%; The minimum down payment ratio for commercial personal housing loans for second housing 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.
The interest rate on provident fund loans was lowered by 0.25 percentage points
The People's Bank of China decided to reduce the interest rate of personal housing provident fund loans by 0.25 percentage points from May 18, 2024.
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;
The interest rate 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.
The lower limit of interest rates for the first and second sets of commercial loans will be abolished
The central bank issued the Notice of the People's Bank of China on Adjusting the Interest Rate Policy for Commercial Personal Housing Loans, which includes: abolishing the lower limit of the interest rate policy for commercial personal housing loans for the first and second houses at the national level;
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 its jurisdiction (if any) according to the real estate market situation of each city within its jurisdiction and the regulation and control requirements of the local government;
Banking financial institutions should be based on the provincial market interest rate pricing self-discipline mechanism to determine the lower limit of interest rates (if any), combined with the institution's operating conditions, customer risk status and other factors, reasonable determination of the specific interest rate level of each loan.
According to the analysis, the release of the new policy can effectively reduce the loan interest expense for home buyers, not only reducing the monthly repayment, but also reducing the total interest expense, and the saved funds can be used for other investment or consumption to improve the quality of life. This has also enabled more potential buyers to qualify for loans or be able to afford to purchase spacious, higher-quality housing, contributing to the improvement of housing conditions for residents.
For the real estate industry, these measures can boost the demand of the real estate market, help to digest the market inventory, and promote the healthy development of the real estate market; It also sends a signal to the market that the government supports reasonable housing demand, enhances the confidence of consumers and investors in the real estate market, and helps stabilize market expectations.
On the afternoon of May 17, real estate stocks rose rapidly, and many shares such as I love my home, airport shares, and urban investment holdings rose to the limit.
Previously reported
On May 16, the National Development and Reform Commission wrote in "Qiushi" that it is necessary to accelerate the construction of a new model of real estate development and promote the steady and healthy development of the real estate market.
On the same day, many places released information on the new deal for the property market, involving Shenzhen, Beijing, Hefei, Wuxi, Changzhou, Dali and other cities.
Driven by the above news, the A-share and Hong Kong real estate sectors collectively strengthened.
On May 16, A-shares stabilized and rebounded, with the Shanghai Composite Index rising 0.08% to close at 3,122.40 points, the Shenzhen Component Index rising 0.21% to close at 9,604.13 points, and the ChiNext Index rising 0.29% to close at 1,844.21 points, with a total turnover of 850.3 billion yuan.
The real estate sector once again staged a batch of daily limits. The real estate sector rose sharply by 3.55% to take the top spot. Special services, Rongsheng development and other shares rose by more than 10%.
Hong Kong's Hang Seng Index rose 1.59% to 19,376.53 points, the Hang Seng Technology Index rose 0.76% to 4,072.15 points, the Hang Seng China Enterprises Index rose 1.93% to 6,871.38 points, and the Hang Seng Hong Kong Chinese Enterprises Index rose 1.05% to 3,997.28 points, with a market turnover of HK$204.899 billion.
Real estate stocks also rose sharply, with Longfor Group rising nearly 11% to lead the blue-chip gains, Sino-Ocean Group rising more than 46%, and Vanke rising nearly 16%.
(Source: official website of the central bank, Wind Wind, etc.)