Take a look at this lively May 17, as soon as the central bank made a move, there were three blockbuster news on housing loans, which directly turned the comment area into a battlefield.
The real estate market has been rising again and again, and the central bank has really worked hard this time.
Let me sort out the central bank's policy adjustment this time. The down payment for a first home has been adjusted to 15%, a drop of 5 percentage points from the previous 20%, which is huge positive news for many first-time buyers. The sudden drop in the down payment that would have been needed has eased the burden on many young people who are planning to buy a home.
The down payment for the second home has been adjusted to 25% this time, which is higher than the proportion of the first home, but for those who already have a home and want to reinvest, this policy can be regarded as a spring breeze. After all, in a market environment where housing prices are high, even a little easing could be a key factor in driving their decision-making.
Perhaps the most head-scratching change is the adjustment of the CPF interest rate. The central bank announced a 0.25 percentage point cut, which ostensibly eases the repayment pressure of borrowers, but the actual impact is complex. Because CPF loans are an important support for many migrant workers to buy houses, this change directly affects their monthly repayments.
It has to be mentioned that the central bank has also released a free adjustment policy on commercial loans, and there is no lower limit on the interest rate of commercial loans in various places. This means that banks can offer more competitive lending rates based on their own circumstances and market demand. This strategy is to encourage competition among banks to better serve homebuyers.
The introduction of this series of policies made home buyers feel the spring breeze for a while. The original intention of the adjustment of the provident fund interest rate is good, but in fact, because the loan limit of the provident fund has not been increased at the same time, this makes many migrant workers who have accumulated a large amount of provident fund feel a little helpless.
Although they have a large provident fund, they do not increase the total amount of loans, but the total interest they need to pay due to the adjustment of interest rates may increase. For those families who are already saddled with higher monthly payments, such a policy change has eased some of the burden, but it remains to be seen whether the benefits actually outweigh the disadvantages.
Some property developers are re-evaluating the future direction of the market and considering whether they should adjust their sales strategy or launch plans. The reduction in down payments and changes in loan rates may attract more buyers to the market in the short term, which is good news for some developers who are eager to destock.
That's all for the central bank's three major moves. Buying a house can be big or small, and if you are not careful, it will be a pitfall. So the policy sounds sweet, but everyone has to think carefully, don't be carried away by short-term temptations.
It's not just about buying a big baby, it's a big investment, and it's always right to be cautious. I hope everyone can buy the home of their choice, and at the same time, don't end up with a loan to repay your gray hair.
It is difficult to predict the direction of the policy wind, but the rational choice is a small rudder that everyone can master. Naughty central bank, naughty policies, I hope can bring joy and hope to everyone's life!