Home buyers welcome favorable policies again, and the provident fund loan interest rate has been lowered for the first time in 47 years. On the evening of September 30, The People's Bank of China announced that it would reduce the interest rate of the first personal housing provident fund loan by 0.15 percentage points from October 1, 2022, and adjust the interest rates below 5 years (including 5 years) and above 5 years to 2.6% and 3.1% respectively. The interest rate policy for the second set of personal housing provident fund loans remains unchanged, that is, the interest rates for less than 5 years (including 5 years) and more than 5 years shall not be less than 3.025% and 3.575% respectively.
Provident Fund loan interest rate for the first time in 7 years
my country's " Housing Provident Fund Management Regulations " stipulates that the deposit and loan interest rates of housing provident fund shall be proposed by the People's Bank of China. After soliciting opinions from the construction administrative department of the State Council, it shall be submitted to the State Council for approval. The current provident fund loan interest rate was adjusted and implemented on August 26, 2015. The provident fund loan interest rate for more than five years is 3.25%, and the provident fund loan interest rate for five years is 2.75%, which is the same standard across the country.
In the past, my country's personal housing commercial loan interest rates were floating proportionally based on the central bank loan benchmark interest rate. Each time the central bank adjusts the loan benchmark interest rate, the provident fund loan interest rate will also be adjusted. In August 2019, the central bank issued an announcement on the adjustment of commercial personal housing loan interest rates. Starting from October 8 of that year, the newly issued commercial personal housing loan interest rate will be formed with the loan market quotation rate (LPR) of the corresponding period of the last month as the pricing benchmark. Since then, the "anchor" of commercial mortgage interest rates has changed from , the central bank's benchmark interest rate to the LPR released every month, but the provident fund loan interest rate has not adjusted accordingly.
industry estimates that provident fund loan 1 million monthly payment can be reduced by 81.9 yuan
industry estimates that if the maximum amount of provident fund loans applied for by both spouses is 1 million, the loan is 30 years, the loan is equal to principal and interest repayment method, after the 3.1% interest rate is implemented, the monthly payment of provident fund loans can be reduced by 81.9 yuan, and the cumulative monthly payment in 30 years is reduced by 29,500 yuan.
Industry insiders said that recently, mortgage interest rates have become the focus of market attention. Reducing mortgage interest rates, including the first personal housing provident fund loan interest rates, has grasped the key to "stabilizing real estate". With the help of a series of policies, it will help improve market confidence.
"The reduction in the provident fund loan interest rate this time is mainly aimed at the demand for housing purchases for urgent needs, that is, the implementation of a loose policy orientation for the first personal provident fund loan, reflecting the orientation of further reducing the housing purchase costs of home buyers who need urgent needs." Yan Yuejin, research director of the think tank center of the E-House Research Institute, said that at the same time, this policy also reflects the orientation of interest rate reduction for provident fund loans, and is another important financial policy after the reduction of commercial loan interest rates.
Compared with measures such as reducing the down payment ratio, Zheng Houcheng, director of Yingda Securities Research Institute, believes that reducing mortgage interest rates is a more effective means to boost the cumulative year-on-year sales area of commercial housing. First, because lowering the down payment only lowers the purchase threshold of commercial housing, but does not substantially reduce the burden of residents on buying a house. Reducing mortgage interest rates can continuously alleviate the pressure on cash flow for home buyers; second, from the historical trend, there is a strong negative correlation between the average interest rate of first-time mortgage loans and the cumulative sales area of commercial housing over the same period last year, that is, reducing mortgage interest rates can effectively promote the growth rate of commercial housing sales.
Zhang Dawei, chief analyst of Centaline Property, analyzed that all sources of provident fund loans are the wage form of employees, including half of which is the direct contribution of employees' wages, and the other half is the unit for employees. Therefore, in addition to the restricted amount, commercial bank loan policy needs to be issued by the central bank, and the provident fund policy can be implemented by various places. "Before this, the provident fund loan policy was basically to fine-tune the provident fund loan ceiling and reduce the down payment of provident fund ." He said.
Yan Yuejin further stated that commercial bank loans continue to cut interest rates, objectively, it also requires further reduction of provident fund loan interest rates. Otherwise, the interest rate gap between provident fund loans and commercial loans is relatively small, which objectively will also make the attractiveness of provident fund loans less, so interest rate cuts are needed. The further reduction of the interest rate of provident fund loans has made the advantages of subsequent provident fund loans more obvious, and it has a positive effect on further reducing the loan interest rate for home buyers who need it.
Oriental Jincheng chief macro analyst Wang Qing believes that the interest rate of the first home provident fund loan has been greatly reduced. On the one hand, this will reduce the monthly payment burden of existing provident fund loans, which will help boost consumption; on the other hand, this will also stimulate more demand for housing provident fund loans. The scale of entrusted loans in the monthly financial data will show a significant year-on-year growth momentum, which will promote the loose credit process to a certain extent.
There is still a lot of room for policy efforts to stabilize the property market
In recent days, real estate market policies have been released intensively. On September 29, the People's Bank of and html) hiring the phased relaxation of the lower interest rate limit for first-home housing loans in some cities. On September 30, the Ministry of Finance and the State Administration of Taxation issued a document stating that from October 1, 2022 to December 31, 2023, taxpayers who sell their own houses and repurchase their houses in the market within one year after the sale of the current houses will be given a tax refund discount on the personal income tax that has been paid for the sale of the current houses.
"In recent days, policies to stabilize the property market are intensive, and the policy of stabilizing the property market has been upgraded from the previous local , one city, one policy, and to central ministries and commissions. In particular, credit policies have become the mainstream of the market. After some cities can lower the lower limit of commercial loan interest rates, the provident fund loan interest rates have also begun to be lowered." Zhang Dawei said that various real estate market policies are being upgraded comprehensively, and the trend of the real estate market bottoming out and stabilizing is becoming more and more obvious.
Zheng Houcheng believes that effective boosting the real estate market requires multiple measures. Reducing mortgage interest rates is of key, but in addition to effectively reducing the cost of buying a house by reducing mortgage interest rates, effectively boosting the real estate market also requires a "combination punch", including effectively boosting the confidence of the real estate market, supplemented by measures such as reducing down payments and relaxing the "five restrictions".
"The later period depends on the real estate repair situation, and there is still a lot of room for strength to stabilize the property market." Wang Qing believes that, driven by the recent sharp drop in bank deposit interest rates, even if the MLF interest rate remained unchanged in the fourth quarter, the 5-year LPR quotation is expected to be further lowered, which will drive a larger and comprehensive decline in mortgage interest rates, thereby promoting the trend of recovery in the property market as soon as possible around the end of the year.
Wang Xiaoqiang, chief analyst of Zhuge House Search Data Research Center, believes that since the beginning of this year, cities have frequently relaxed their policies, but the market recovery is slow, and the market confidence of home buyers has not responded significantly. According to past experience, the transmission of central policies on market confidence is greater than the correction of local policies. In the fourth quarter, with the support of multiple central policies, the market will be helped to improve its confidence, and the market is expected to be repaired at an accelerated pace, and it is expected to achieve obvious results.
From the perspective of policy combination, Yan Yuejin said that this provident fund policy can also be used in combination with other policies. For example, some cities allow second houses to enjoy the provident fund preferential policies for the first house, which objectively has positive significance for the release of the demand for some improved house purchases.
(Cailianshe, the official website of the People's Bank of China, Beijing Youth Daily)
Editor: Zhao Shanshan
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