The interest rate of first-home commercial loan in Jining, Shandong has dropped to 3.95%, the interest rate of Wuhan, Hubei has dropped to 3.9%, and the number of cities following up is still growing...
With the intensive implementation of favorable mortgage policies, the interest rate of first-home commercial loans in many places across the country has been lowered recently, and the cost of buying houses for those who need it is urgently needed is continuing to decrease.
"I remember that at this time last year, the interest rate of the first home in Wuhan was 5.85%. Recently, I made an appointment with several agents to view houses and learned that the current interest rate is as low as 3.9%. " said Mr. Liu, a citizen who is preparing to purchase his first home in Wuhan.
Interest rate has entered the "3 era", which cities have their mortgage loans decreased? Is there a good opportunity to buy a house? What should home buyers pay attention to?
In this regard, we interviewed many experts to answer it. Let’s take a look at it together~
asked a question :
Why has the mortgage interest rate been lowered recently? Has it been implemented in various places?
answer :
On September 29, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued the "Notice on Phase Adjustment of Differentiated Housing Credit Policy", deciding to phased adjustment of differentiated Housing Credit Policy. City governments that meet the conditions may independently decide to maintain, lower or cancel the interest rate limit for the first-home loan issued in the local area before the end of 2022.
Recently, a reporter from the Financial Times learned from banking institutions and real estate agencies in many places across the country that since the National Day, governments in many places across the country have actively responded. At present, the interest rates of first commercial personal housing loans in many regions have fallen below 4.0%, as low as 3.7% .
A staff member of the Wuhan Branch of China Construction Bank revealed to the Financial Times reporter that although CCB has not yet announced the exact news, it is expected that the bank's first home loan interest rate will most likely drop to 3.9% by the end of this year.
According to the latest issue of loan market quotation rate (LPR) released by the People's Bank of China, the lowest interest rate for first-home loans can be as low as 4.1%. After the notice of phased relaxation of the lower interest rate limit for first-home housing loans in some cities, except Wuhan, the lower interest rate limit for first-home commercial housing loans in many cities such as Qingyuan , Jining , Yangjiang and other cities have been adjusted recently.
htmlOn September 30, the "Resolution on Adjusting Real Estate Credit Policy under the Jurisdiction" issued by the Guangdong Market Interest Rate Pricing Self-Discipline Mechanism shows that from October 1 to December 31, Jiangmen , Yunfu , Zhanjiang cancelled the interest rate lower limit, Qingyuan interest rate lower limit was adjusted to LPR reduction 60 basis points, and Yangjiang interest rate lower limit was adjusted to LPR reduction 40 basis points."According to the current 5-year LPR, the lowest interest rate for first-home commercial loans has dropped to 3.7%, but this policy has only been implemented until the end of December this year." staff member of a state-owned bank in Qingyuan City told the Financial Times reporter.
Announcement issued by Jining Municipal Housing and Urban-Rural Development Bureau also shows that from October 5 (inclusive) to the end of the year, Jining Municipal phased down the interest rate limit for commercial personal loans for the city's first housing unit by 15 basis points.
"The adjusted mortgage interest rate will substantially reduce the home purchase cost of home buyers." Ma Hong, a senior researcher at Zhixin Investment Research Institute, said that it is reported that the first mortgage interest rate of a commercial bank in Jining has dropped from 4.1% to 3.95%. If you take a 30-year commercial personal mortgage loan of 1 million yuan as an example, the total amount can save about more than 30,000 yuan in interest expenses.
"This is the third time in three years that the financial management department has adjusted the lower limit of the first-home mortgage interest rate for the first-home mortgage." Dong Ximiao, chief researcher of China Merchants Financial , said that in the case of sluggish housing consumption demand and weakening of the real estate market, adjusting the lower limit of the first-home mortgage interest rate will convey a signal of stable confidence and stable market, and promote the stable and healthy development of the real estate market.
Ask a question :
Which cities have mortgage loans dropped? Why hasn't my city changed?
Answer :
Not all regions have the lowest interest rate limit on commercial personal housing loans for commercial housing in commercial areas will be adjusted before the end of this year.
According to the notice issued by the People's Bank of China and the China Banking and Insurance Regulatory Commission, the policy of phased adjustment of differentiated housing credit is only for cities where the sales prices of newly built commercial housing have been declining month-on-month and year-on-year from June to August 2022.
Data provided by E-House Research Institute shows that among the changes in the sales prices of commercial housing in 70 large and medium-sized cities announced by the National Bureau of Statistics every month, 23 cities in meet the above conditions, among which 8 second-tier cities meet the requirements, 18 third-tier cities, and all first-tier cities missed this policy.
It is worth noting that the coverage of this policy is not limited to 70 large and medium-sized cities. Industry experts believe that is expected to have more fourth-tier cities, meets policy conditions .
Ma Hong analyzed that "the reason for the phased reduction of the lower limit of mortgage interest rates for such cities is closely related to factors such as slow release of local short-term demand, sluggish housing sales, and long residential inventory sales cycle."
"According to the information previously released by the central bank , most of the 23 cities that meet the conditions have already adjusted the interest rate of first-home mortgages to the lowest level in history." Ma Hong told the Financial Times reporter that the reduction of mortgage interest rates will help better meet the rigid and improved housing needs in various places.
Dong Ximiao further analyzed, "Of course, this is just an adjustment to the lower limit of the first mortgage interest rate. has different regions and banks' actual interest rates may have different . From the perspective of regions, some second- and third-tier cities may meet the conditions for adjustment and make adjustments, but first-tier cities and some provincial capital cities are difficult to adjust; from the perspective of banks, expects that most banks will actually implement the lower limit of the interest rate for first mortgage loans ."
asked a question :
For home buyers, is this a good time to buy a house?
answer :
Ma Hong said in an interview with the Financial Times reporter, "For home buyers with rigid and improved needs, whether it is the personal mortgage loan interest rate or the provident fund loan interest rate , most areas of are at the lowest level in many years. and the current home buyers are relatively fast in applying for commercial bank mortgage loans, which is a good time to buy a house ."
"But it is recommended that home buyers do not blindly follow or even speculate on housing, and pay attention to local risks ." Ma Hong suggested.
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Source: Financial Times Client
Reporter: Zhang Bingjie
Editor: Li Liujia Yu Jiaxin Han Shengjie
proofreading: Yu Jiaxin
Email: [email protected]
