① Some hot second-tier cities have already implemented the new policies, and it is expected that more cities will follow suit. ② Abolish the lower limit of mortgage interest rates at the national level, and extend the favorable policy to two suites. It is expected that more cities will lower mortgage interest rates, and it is expected that there will also be room for lower mortgage interest rates in first-tier and core second-tier cities.
Financial Services Association, May 22 (Reporter Gao Ping) After the central bank announced the new mortgage policy on May 17, many places have implemented relevant policies one after another. Following places such as Wuhan, Hefei, and Changsha, today, the Finance Association reporter learned that Jinan and other places have also reduced the down payment ratio to the lower limit, that is, the down payment ratio for the first home was reduced to 15%, and the down payment ratio for the second home was reduced to 25%. At the same time, just like Wuhan and Hefei, Jinan also lowered mortgage interest rates, and interest rates for first and second home loans were reduced by 20 basis points.
Industry insiders told the Financial Federation reporter that it is expected that in the future, more cities will speed up the pace of lowering commercial loan down payment ratios and mortgage interest rates, but the adjustments will stick to the city's policies, and the reduction in high-energy cities is expected to be less than that of low-energy cities.
Cities that cut down payment ratios and mortgage interest rates continue to expand
More and more cities are joining the camp of adjusting down payment ratios and lowering mortgage interest rates. Today, the Financial Services Association reporter learned from the individual loan departments of several banks in Jinan that the down payment ratio for the first home in Jinan was reduced to 15% and 25% for the second home; at the same time, the interest rate for the first home loan dropped from 3.75% to 3.55%, and the second home loan rate dropped from 4.15% to 3.95%. “The interest rate for the first home loan was LPR-20BP; now it is LPR-40BP. The interest rate for the second home loan was previously LPR+20BP, but now it has dropped to LPR.” A person in the personal loan department of a bank in Jinan said so.
Earlier, the Financial Services Association reporter learned that Wuhan, Hefei, Changsha and other places have also adjusted down payment ratios and mortgage interest rates. For example, on May 21, the Financial Services Association reporter learned from the individual loan departments of several banks in Wuhan that some banks have begun implementing 15% down payments for the first home and 25% down payments for the second set; in addition, interest rates for the first home loan have been reduced from 3.55% to 3.25%. Wuhan is also the first city where the down payment ratio was lowered to the lower limit according to public information.
“The down payment ratio for the first set was reduced to no less than 15%, and the lowest down payment ratio for the second home was 25%, setting the record for the lowest down payment ratio in history.” Wang Xiaoyi, chief analyst at the Zhuge Data Research Center, told the Financial Federation reporter that the policy adjustments have undoubtedly lowered the threshold for buying a home, benefiting buyers, and allowing more buyers with insufficient funds to buy a home eligible to board the bus.
There is a difference between adjusting the down payment ratio and mortgage interest rate at the same time as described above. Judging from public reports, there are also cities that have lowered the mortgage down payment ratio to the lower limit, but mortgage interest rates have not been adjusted yet. According to a report by the Financial Federation, Xi'an has now begun implementing the central bank's new policy. The down payment ratio for the first home has been reduced to 15%, and the down payment ratio for the second home has been reduced to 25%; however, the mortgage interest rate for commercial loans has not yet received an adjustment notice, and the specific policy at the time of signing the housing purchase contract shall prevail.
Today, the Financial Services Association reporter also learned from a real estate agency in a hot second-tier city that the lowest local down payment ratio has also dropped to 15%, but mortgage interest rates have not yet been adjusted. “The interest rate for the first home loan is currently at a relatively low level of 3.45%.” That's what the agent said.
“Since mortgage interest rate cuts need to take into account interest spreads from existing customers, implementation is relatively slow in various regions, but under the guidance of the 517 epic policy, the general trend of further lowering mortgage interest rates everywhere will follow in the future.” An industry insider said.
It is expected that more cities will follow up and implement the reduction of high-energy cities or less than low-energy cities
Looking at cities that are currently known to adjust down payment ratios and mortgage interest rates, Wang Xiaoyi said in an interview with a reporter from the Financial Association that some hot second-tier cities have already implemented the new policies, and it is expected that more cities will follow suit.
Looking ahead to the later stages, Wang Xiaoyi believes that the current adjustments are still expected to be led by second-tier cities and are gaining momentum. First-tier cities are being implemented relatively slowly, and the reduction in high-energy cities is less than that of low-energy cities. “It is expected that all regions will intensively introduce follow-up policies in May-June.” Some industry insiders also said.
In fact, before lowering the minimum down payment ratio for personal housing loans at the national level, many parts of the country had already reduced the down payment ratio to 20% for the first unit and the lower limit of 30% for the second unit. Only a few cities had a high down payment ratio. For example, first-tier cities all had a 30% down payment ratio, and the second set ranged from 40% to 50%. Chen Wenjing, director of market research at the China Index Research Institute, believes that after the central bank lowered the lower limit of the down payment ratio this time, it is expected that more cities will follow up and implement it, and first-tier cities also have room and expectations to lower the threshold for buyers to buy a home.
Also, judging from mortgage interest rates, the interest rate gap between first and second home loans in some cities narrowed markedly after this reduction. For example, after the Wuhan adjustment, the interest rate for the first home loan was reduced to 3.25%, and the rate for the second home was reduced to 3.35%. According to research by the Bank of China, currently, commercial banks in some cities implement the interest rate for the first home loan at around 3.1%, and the central bank has lifted the lower limit of mortgage interest rates at the national level and “subtracted” the cost of buying a home to extend the benefits to two homes.
Chen Wenjing also believes that abolishing the lower limit of mortgage interest rates at the national level and extending the favorable policy to two suites, it is expected that more cities will lower mortgage interest rates, and there is also hope that there will be room for lower mortgage interest rates in first-tier and core second-tier cities.