The boiling Bloomberg essay that was circulated some time ago has finally landed today!
On September 24, the State Council Information Office held a press conference, and the following important information about real estate was released:
RRR cut: The reserve requirement ratio will be lowered by 0.5 percentage points in the near future.
Adjustment of interest rates on existing housing: guide commercial banks to reduce the interest rate of existing housing loans to around the interest rate of new housing loans, and the average decline is expected to be about 0.5 percentage points.
Lower the down payment for housing loans: Lower the minimum down payment ratio for second home loans from 25% to 15% at the national level, and unify the minimum down payment ratio for first and second home loans.
Create new monetary policy tools to support the stable development of the stock market.
Study allowing policy banks and commercial banks to support qualified enterprises in acquiring land for real estate enterprises in a market-oriented manner.
NO.1|One
The interest rate of the stock housing has been reduced, and the million-dollar mortgage is repaid by 280 yuan per month
Since the implementation of the new policy on the property market on · 17, the central bank announced the cancellation of the lower limit of the real estate loan interest rate, followed by the first home loan interest rate in various cities are lowered, and the call for the reduction of the stock housing loan interest rate is also increasing. At the beginning of September, there was news that the interest rate on the existing mortgage would be lowered in two steps, which once again ignited market sentiment.
Aerial photograph of Hefei property market
According to relevant statistics, the current average interest rate of the existing housing loans in the country is about 3.92%, and the average mortgage interest rate of the new housing loans is about 3.3%, that is, the difference between the interest rates of the existing housing and the new loans is about 60 basis points.
If it is lowered by another 50 basis points, the average interest rate difference between the interest rate of the existing mortgage and the interest rate of the new mortgage is about 10-15 basis points, which is already a small gap, which will be a big positive for previous home buyers, especially those who are standing at a high level to buy a house.
Taking Hefei as an example, this year's LPR has undergone two interest rate cuts, a total of 35BP, and the current loan interest rate is 3.85%, while Hefei is currently generally implementing LPR-50BP, that is, 3.35%.
The interest rate of the existing housing loan is basically the same as the LPR after the first two unified adjustments, but the current interest rate of most existing housing loans is still 4.0% or 4.2%, and will be lowered to the same as the LPR at the beginning of next year. There is a 50BP difference between the interest rate of the existing housing loan and the interest rate of the new loan, and after this reduction of the interest rate of the existing housing, the interest rate of the existing housing is expected to be consistent with the interest rate of the new housing loan, that is, it will be reduced to 3.35%.
If the commercial loan amount is 1 million yuan and the loan is repaid for 30 years, the monthly payment will be reduced by about 280 yuan, and the interest expense can be reduced by about 100,000 yuan in 30 years.
It is reported that it is expected that the policy of reducing the stock of housing loans will benefit 50 million households and 150 million people, and the total annual reduction of family interest expenses will be about 150 billion.
Pan Gongsheng, governor of the People's Bank of China, said that for the adjustment of housing loan interest rates, banks need a certain amount of time to make technical preparations, and the mortgage loan mechanism of commercial banks will be improved in the future.
The industry expects that the adjustment of the interest rate of the stock housing will most likely refer to the last centralized reduction method, and the bank will reduce the interest rate of the stock housing loan to the interest rate of the new housing loan.
NO.2|II
Minimum down payment for a second home reduced to 15%
There is also good news for buyers who are improving their needs, and that is the reduction in the down payment ratio for second homes. According to the announcement, the minimum down payment ratio for second home loans at the national level has been lowered from 25% to 15%, and the minimum down payment ratio for first and second home loans has been unified.
This also means that the down payment for a second home has also been reduced to 15% for improvement buyers.
Although the down payment ratio for the second home has been lowered before, it is still higher than the first home. The 15% reduction is in line with the first home and will help promote the down payment ratio and the lower threshold for second or improved homes.
Aerial photograph of Hefei property market
From a national point of view, the dividing line between the first home and the second house in most cities has become more and more diluted, and only the down payment for the second house in the first-tier cities is still significantly higher than the first house. For buyers in first-tier cities such as Beijing, Shanghai, and Shenzhen, this will lower the threshold for buying a house and stimulate the demand for improvement or replacement of homes.
Roughly calculated, if a family subscribes to a second house with a total price of 3 million, the down payment used to be 750,000, but now it is reduced to 450,000, a direct reduction of 300,000, which will further activate the demand for improvement or replacement of houses.
NO.3|III
epilogue
At present, the mortgage interest rate in some cities has dropped to within 2, the lowest interest rate on the first home loan in Guangzhou has been 2.89%, the mainstream mortgage interest rate in Suzhou is 2.95%, but there have been banks to implement 2.85%, the first home loan interest rate in Nanjing is as low as 2.95%, and the mortgage interest rate in Chengdu has dropped to 2.75%, a record low.
According to relevant statistics, in August 2024, the average interest rate for the first home in the country has fallen to about 3.25%, and the average interest rate for the second home loan is 3.6%. The average interest rate of the overall mortgage in August was around 3.3%. With the RRR and interest rate cuts, the mortgage interest rate is expected to fall to less than 3.
Aerial photograph of Hefei property market
Follow-up real estate policies will be introduced to further stimulate the market, such as the introduction of purchase deed tax, value-added tax and other tax reduction policies to reduce the transaction cost of home buyers. Reduce personal income tax and value-added tax on second-hand housing transactions to activate the second-hand housing market and promote the circulation and replacement of housing. Relevant policies have been introduced to control supply and accelerate decentralization.
Since 2024, the central government has repeatedly emphasized the importance of real estate, and stabilizing real estate is crucial to stabilizing the macroeconomic market.
For home buyers, it is also the most lenient real estate, the policy has bottomed out, and the best time to buy a house has come. Cost-effective new houses and new houses with new heights of quality are good choices for just needing and improving home ownership.
1. This article is the original work of the Hefei property market public platform, and the content of the article and the right to use the pictures belong to the first room; 2. Without the authorization of the first housing company, it shall not be used in any way, including but not limited to reprinting, excerpting, copying or establishing mirrors, etc., and offenders will be prosecuted. 3. The statistical data comes from the AI property market index system of the First Housing Research Institute, and cannot be cited by any institution.