The real estate market has recently ushered in major positive news, and the central bank's "triple bombing" policy has given many people hope. This policy can be described as "nuclear bomb", reducing the down payment ratio, lowering the interest rate on provident fund loans and removing the lower limit on mortgage interest rates. This is undoubtedly a once-in-a-lifetime opportunity for those who want to buy a home. So how exactly do these policies work? Let's take a look.
In the past few years, the real estate market has been sluggish, and many people are shy away from buying a house. Recently, the central bank has made a series of policies to try to revive the real estate market.
The down payment ratio has been reduced to 15% for the first home and 25% for the second home. This is undoubtedly a great boon for those who do not have sufficient funds on hand but urgently need to buy a house. For example, in the past, to buy a house worth 3 million, the down payment was at least 900,000, but now it only needs 450,000, and the threshold has been lowered a lot.
At the same time, the interest rate on CPF loans has been reduced by 0.25%, which may not seem like a big number, but for those who take out a loan to buy a house, the monthly repayment pressure will be less, and it will be a lot of money savings in the long run.
Most crucially, the lower mortgage rate limit for first and second homes has been removed. In other words, banks are now free to adjust mortgage interest rates according to market conditions, so that the cost of buying a house is more flexible.
The introduction of these policies has a clear goal, which is to stimulate the real estate market and make housing affordable for more people. This wave of operation by the central bank can be called a "nuclear bomb" stimulus, and the intensity is unprecedented.
After the policy was introduced, the market reacted quickly. A lot of people are starting to reconsider their home buying plans, especially those who previously gave up on buying a home because the down payment was too high, and now see hope. The recovery of the real estate market is not only a matter for the real estate industry, it affects the entire economic chain. Building materials, home decoration, financial services, etc., are all upstream and downstream industries in the real estate market. As soon as the real estate market is active, the entire economy will be boosted.
At the same time, individual cities have also begun to take some measures to close houses, and there are even rumors that the national team has entered the market en masse, which has injected a boost into the real estate market. Still, there are a lot of uncertainties in the market. Some people believe that it will take time to verify whether these policy measures will really have an immediate effect.
This series of policies of the central bank is seen by many as an aggressive measure taken in the process of rescuing the economy. Some people have vividly compared it to "electric shock", "defibrillation", and "artificial respiration", and the root of the problem lies in whether it is possible to completely loosen the hand holding the neck and truly let the market breathe freely.
Under this wave of policy stimulus, there have also been some new changes in the market. For example, some developers are starting to offer more flexible payment options, and some intermediaries are also touting these incentives in an attempt to attract more buyers.
Finally, now is undoubtedly a rare opportunity for home buyers. But there are also concerns about how long this policy stimulus will last, and whether there will be another rise in house prices in the short term. After all, the healthy development of the real estate market requires a long-term stable policy environment, not a short-term "fierce medicine".