Favorable policies for the property market are out again. On May 17, the central bank issued three real estate financial policy notices one after another, canceling the lower limit of the interest rate policy for commercial personal housing loans for the first and second houses at the national level, lowering the interest rate of personal housing provident fund loans by 0.25 percentage points, and adjusting the minimum down payment ratio policy for personal housing loans.
According to the Notice of the People's Bank of China on Adjusting the Interest Rate Policy for Commercial Personal Housing Loans, in order to implement the decisions and deployments of the Party Central Committee and the State Council, adapt to the new changes in the supply and demand relationship of the mainland real estate market and the new expectations of the people for high-quality housing, and promote the stable and healthy development of the real estate market, the lower limit of the interest rate policy for commercial personal housing loans for the first and second houses at the national level has been abolished; 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 Notice of the People's Bank of China on Reducing the Interest Rate of Personal Housing Provident Fund Loans, the People's Bank of China has decided to reduce the interest rate of personal housing provident fund loans by 0.25 percentage points from May 18, 2024, and 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, 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.
According to 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, 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%.
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.
Source: Jimu News (Reporter: Liu Shan)