“20% down payment” now again to lower the first suite down payment ratio

2022-06-22 0 By

Mortgage policies in some cities appear substantial loosening.Recently, it was reported that the first home in Heze, Shandong province, down payment ratio from the previous 30 percent to 20 percent.Other cities have also lowered mortgage rates and down-payment ratios for first-time homes.Shanghai Securities News reporters recently learned from real estate agents in Chongqing and Ganzhou, Jiangxi province that many local banks have lowered the down payment ratio for first home purchases to 20 percent around the Spring Festival holiday.Insiders believe that the loosening of mortgage down payment policy is not unexpected.Recently, more than 20 cities have raised the loan limit of housing provident fund and reduced the down payment ratio for second homes.Dong Ximiao, chief researcher at Zhaopin Finance and adjunct researcher at fudan University’s Institute of Finance, said the “one city, one policy” program will be extended to commercial loans, and there is a high possibility that banks will fine-tune mortgages based on local conditions this year.”When local destocking pressure is high, if housing prices are relatively stable, there will be room for adjustment of housing policy.”He expects more smaller cities to “loosen” mortgage policies based on local property conditions.The real estate policy of easing down payments on mortgage loans in many places and implementing policies tailored to different cities is continuing to be implemented.February 17, Shandong Heze Lianjia real estate agent Mr. Zhang introduced, the current first suite down payment is 20%;When the mortgage is closed, the down payment is 25%;The down payment for a second home is 30 percent.”It was only changed two days ago and we have had more inquiries than before.”Mr. Zhang said.Shanghai Securities News reporters to consult the local Construction Bank credit manager, also got the same information.A local banker said heze had implemented a 20 percent down payment policy for the first home from 2016 to 2020.But the down payment only rose to 30% in 2021 due to tighter mortgage limits.Now that credit is easy, it is back up to 20%.”This is an adjustment based on bank credit and has nothing to do with government guidance.”Chongqing and Ganzhou in Jiangxi province loosened their mortgage policies around the Spring Festival.Mr. Wang of Chongqing Lianjia real estate agency said banks in chongqing have implemented a 20 percent down payment policy for the first home.However, a bank of China credit manager in the area said 20% isn’t currently applied to all down payments on first homes, and it depends on the building and developer.The downpayment ratio of home loans has also heated up the real estate market in Chongqing.When the reporter interviews already is that day early morning, Mr. Wang still answers the question that buy a house patiently.”I am very busy these days. I am always online from 6 am to 12 PM.”He said that after the Spring Festival holiday, more people came to visit than in 2021, mostly buyers of newly needed or improved homes.Mr. Li of Lianjia Real estate agency in Ganzhou, Jiangxi province, also said that the down payment ratio for the first home in Ganzhou has been reduced to 20 percent, which is now implemented by China Citic Bank, China Development Bank and China Merchants Bank among the state-owned big banks and joint-stock banks.If a second home is in a non-restricted area, it will have to pay 30 percent down, and if it is in a restricted area, it will have to pay 50 percent down, he said.A credit manager at the local Agricultural Bank said that although the minimum down payment for a first home in Ganzhou can be reduced to 20 per cent at present, it still “varies from house to house” and the availability of the minimum down payment depends on the situation of the specific developer.It is understood that as early as around 2017, the central urban area of Ganzhou (including Zhanggong District, Ganzhou Economic and Technological Development Zone, Rongjiang New Area) has implemented the purchase restriction policy.Ganzhou a real estate company said, ganzhou Zhanggong district is still implementing the purchase restriction policy, and Ganzhou Economic and technological Development Zone, Rongjiang New Area of some intermediaries and real estate agents have some “flexible operation”.”Although many banks in the two districts can lower the down payment to 20 per cent for a first home purchase, there is no official notice to lift the purchase limit.”In 2016, the People’s Bank of China and the Banking and Insurance Regulatory Commission issued a notice saying that the minimum down payment ratio of urban residents’ first home mortgage is 25%, but local residents can lower it by 5 percentage points.This means that the minimum down payment in non-restricted cities can be reduced to 20 percent.In addition to the loosening of mortgage policies, there are also local governments to introduce policies to encourage just need to buy houses.Recently, Jilin Yanji issued “encourage farmers to buy a house in the city preferential subsidy implementation plan”, for farmers to buy a house in the city full subsidy deed tax, home appliances, decoration consumption vouchers.The consumption of household appliances can be up to 1,500 yuan (15,000 yuan can be used).There are also local government departments to encourage mortgage policy “loose”.On January 26, The Development and Reform Commission of Anhui Province issued a notice on the issuance of measures to further promote consumption in the near future, guiding real estate, car, home appliance sales enterprises in the Spring Festival holiday through installment free commission, gift vouchers, reduce the proportion of down payment, subsidies replacement and other ways to expand commodity consumption.After guaranteeing just reasonable housing demand, will more small and medium-sized cities join the mortgage “loosening” army?Industry insiders say the answer is yes.The Central Economic Work Conference set the tone for the development of the real estate market this year — to support the commercial housing market to better meet the reasonable housing demand of home buyers, and to promote the virtuous cycle and healthy development of the real estate industry through urban policies.In this year’s government work reports, Heilongjiang, Jiangsu, Zhejiang and Guangdong have made it clear that they will better meet the reasonable housing needs of home buyers.People’s Bank of China previously said that one of the core characteristics of real estate is regional. Under the long-term mechanism management framework of real estate, it is more important to implement the responsibility of urban land and implement real estate regulation based on the local market situation.In its monetary policy implementation report for the fourth quarter of 2021, the People’s Bank of China (PBOC) said it will keep land prices, housing prices and expectations stable, implement a prudent financial management system for real estate, safeguard the legitimate rights and interests of housing consumers, and better meet the reasonable housing needs of home buyers.All kinds of signal directivity is clear: policy orientation will guarantee the reasonable housing demand of just demand.In the industry’s view, this year’s loose mortgage policy, interest rate cut, abundant credit lines, is just need to “get on the bus” good opportunity.Monitoring data from Shell Research Institute showed that in January 2022, average mortgage interest rates and loan cycle in 103 key cities had returned to a reasonable level in mid-2021, and mainstream mortgage interest rates in 59 cities had been lowered month-on-month.In terms of loan cycle, 64 cities shortened their loan cycle compared to the previous month, and banks in four first-tier cities accelerated their loan cycle.Recently, Shanghai Securities News reporters from a number of guangzhou-Shenzhen regional banking institutions to understand that mortgage lending is still this year’s key areas of credit.This year, banks not only have plenty of loans, interest rate preferential, and generally about a week to lend, the earliest can be a day or two.A bank of China sub-branch credit manager revealed that the current interest rate will be raised from 45 basis points to 30 basis points, and the mortgage interest rate for prime customers can be as low as 4.9 percent.