Source: Securities Times
Author: Wu Jiaming
After Shanghai, Guangzhou also took action.
On the 28th, the General Office of the Guangzhou Municipal Government issued the “Notice on Further Promoting the Stable and Healthy Development of Our City's Real Estate Market” to better meet residents' rigid housing needs and diversified demand for improved housing, including measures to further optimize housing purchase restriction policies, housing credit policies, and housing unit determination.
The “Notice” suggests that households that buy homes in Yuexiu, Haizhu, Liwan, Tianhe, Baiyun (excluding Jianggao Town, Taihe Town, Renhe Town, and Zhongluotan Town), Nansha and other districts can provide proof of continuous payment of personal income tax payment or social insurance in the city for the first 6 months before the date of purchase of the house to enjoy the home purchase treatment for households registered as registered residents.
In addition, when a buyer applies for a housing provident fund loan, the deposit period is adjusted to deposit the full amount of the housing provident fund for 6 months (inclusive) or more continuously, allowing them to withdraw the provident fund to pay the down payment for the first newly built commercial housing.
Residents' families and legal entities such as enterprises, institutions, social organizations, etc. will no longer review and obtain real estate title certificates when transferring or processing housing procedures under the name of property analysis.
In terms of mortgages, if a household does not have a home in the area where they are buying a home and meets the conditions for buying a home, a loan for a new home purchase can be determined based on the number of housing units under the reduced name if they meet the “rent one buy one” and “sell one buy one” conditions in the area where the home purchase is located.
The reporter learned from the Guangdong branch of the People's Bank of China that on the same day, the self-regulatory mechanism for interest rate pricing in the Guangdong market made the following adjustments to Guangzhou's differentiated housing credit policy in accordance with changes in the Guangzhou real estate market situation and the regulatory requirements of the municipal government:
1. For households that purchased their first commercial home with a loan, the minimum down payment ratio for commercial personal housing loans was adjusted to not less than 15%, and the lower interest rate limit was abolished.
2. For households with loans to purchase a second commercial home, the minimum down payment ratio for commercial personal housing loans was adjusted to not less than 25%, and the lower interest rate limit was abolished.
3. In the unrestricted purchase area of Guangzhou, for households with 2 or more housing units that have settled the corresponding home purchase loans, banking financial institutions can carefully grasp and specifically determine the down payment ratio and loan interest rate level based on factors such as the borrower's solvency, credit status, etc.; for households with 2 or more housing units and unsettled home purchase loans, the issuance of commercial personal housing loans is suspended.
4. In the restricted purchase area of Guangzhou, the issuance of commercial personal housing loans to households with 2 or more housing units is suspended.
According to reports, the above policy will be implemented from May 29, 2024. Before May 29, 2024 (excluding May 29), commercial housing sales contracts or real estate sales contracts were signed online, and the commercial personal housing loan policy was implemented in accordance with the original regulations. In accordance with the above requirements, banking financial institutions reasonably determine the specific down payment ratio and interest rate level for each loan in accordance with the principles of marketization and legalization, taking into account factors such as the institution's business conditions and customer risk conditions.
The Guangdong branch of the People's Bank of China said that Guangzhou was the first first-tier city to market mortgage interest rates. Eliminating the lower interest rate limit for commercial personal housing loans will help further promote the reduction of residents' housing purchase costs and accurately and effectively support rigid and improved housing needs; lowering the minimum down payment ratio is conducive to lowering the threshold for households to buy homes, further releasing the demand for effective home purchases, and will have a positive impact on stabilizing consumption and expanding domestic demand.
Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, believes that the regulations of the Guangzhou branch of the central bank actually gave the bank the initiative to make a judgment. Banks, as commercial operators, will inevitably set differentiated down payments and interest rates based on market analysis to ensure the safety of their assets. Furthermore, Guangzhou has followed up on the policy, and it is expected that Shenzhen will follow this policy in the next step.
Editor/jayden