Source of this article: Times Finance Author: Yu Siyi
The lower limit of first-home mortgage interest rates in more than 0 cities has been relaxed!
htmlOn September 29, People's Bank of China and China Banking and Insurance Regulatory Commission issued the "Notice on Phase Adjustment of Differentiated Housing Credit Policy" (hereinafter referred to as the "Notice"), deciding to phased adjustment of differentiated Housing Credit Policy. The notice pointed out that for cities where the sales prices of newly built commercial housing have been falling month-on-month and year-on-year in June-August 2022, the local government can independently decide to maintain, lower or cancel the lower limit of the interest rate of the local newly issued first-home mortgage loans before the end of 2022.It is reported that among the 70 large and medium-sized cities included in the Bureau of Statistics survey, a total of 23 cities including Tianjin, Shijiazhuang, Dalian, Harbin, Wuhan, Wenzhou met the conditions.
As of October 13, cities such as Jining , Wuhan, Yichang , Xiangyang , Qingyuan , Jiangmen , Yunfu , Zhanjiang and other cities have joined the ranks of lower mortgage interest rates. Among them, Jining dropped from 4.1% to 3.95%; Wuhan, Yichang and Xiangyang dropped from 4.1% to 3.9%; Qingyuan dropped from 4.1% to 3.7%; Jiangmen, Yunfu and Zhanjiang canceled the interest rate lower limit.
"responds to the previous policy of relaxing the lower limit of the central bank's mortgage interest rate, which is of good inspiration for other cities in the future." Yan Yuejin, research director of the think tank center of the E-House Research Institute, told Times Finance on October 13 that whether localities will directly adjust to 3.7%, it seems that it will not be possible. "If localities want to adjust, the 3.9% interest rate is the most appropriate."
Yan Yuejin further pointed out to Times Finance that the interest rate for first-home mortgages may continue to be lowered in the future, but it is also a gradual process. In Yan Yuejin's view, although some places delegate their authority, they will not immediately be adjusted too low. The "breaking four into three" mortgages in the fourth quarter is an important move for all localities.
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Many places have gradually lowered mortgage interest rates
The first city to be reported to have a decrease in the decline was Qingyuan, Guangdong. On October 1, Qingyuan lowered the interest rate for the first home loan. Official documents show that from October 1, 2022 to December 31, 2022, Qingyuan City will phased the lower limit of the first home interest rate, from the current "LPR-20BP" to "LPR-60BP". Based on the current 5-year LPR 4.3%, the first mortgage interest rate in Qingyuan City can be as low as 3.7%.
On October 13, Mr. Lin, a real estate agent in Qingyuan, Guangdong, told Times Finance, "The interest rate of Qingyuan's first mortgage loan has really reached 3.7%, which is really the lowest." Mr. Lin also repeatedly reminded, "The implementation time is from October to December. If you want to buy a house, you must consider it quickly." Yan Yuejin said that at present, Qingyuan is the largest reduction in various cities.
Following Qingyuan is Jining, Shandong. On October 5, the interest rate for first-home mortgages in Jining dropped from 4.1% to 3.95%. On October 13, the mortgage interest rates in cities such as Wuhan, Yichang, and Xiangyang have joined the ranks of lowering, from 4.1% to 3.9%.
According to Cailianshe, several real estate agents in Yichang said, "The first mortgage interest rate just dropped from 4.1% two days ago (October 11)." A personal loan staff member of a major bank in Xiangyang, Xiangzhou Branch said that the bank's first mortgage interest rate is 3.9%-4.1%. According to different customer qualifications, the minimum interest rate was adjusted to 3.9% yesterday. According to Interface News, since October 8, the mortgage interest rate for purchasing the first home in Wuhan has dropped from the previous 4.1% to 3.9%, and all banks are.
Yan Yuejin pointed out that these three cities are the cities with the highest energy level in Hubei. In other words, if the housing market pressure in such cities is relatively high, then the subsequent policies of other prefecture-level cities will also imitate such cities. This has inspired many provinces and cities, especially the provincial capital cities mentioned earlier, such as Harbin, Lanzhou, Wuhan, Dalian, Tianjin, Shijiazhuang, Kunming and Guiyang. We must pay close attention to the possibility of adjustments to mortgage policies in relevant prefecture-level cities in the future.
data shows that among the 70 large and medium-sized cities of the National Bureau of Statistics from June to August, 23 cities met the requirements of the central bank's new policy.Among them, there are 8 second-tier cities, namely Harbin, Lanzhou, Wuhan, Dalian, Tianjin, Shijiazhuang, Kunming and Guiyang; there are 15 third-tier cities, namely Quanzhou , Wenzhou, Luzhou , Yueyang , Yichang, Beihai , Dali, Qinhuangdao , Zhanjiang, Baotou , Anqing , Jining, Changde , Xiangyang and Guilin.
According to the "Notice" by the People's Bank of China and the China Banking and Insurance Regulatory Commission, the introduction of this policy measure will help support urban governments to make full use of the policy toolbox for "adopting policies based on the city" and promote the stable and healthy development of the real estate market. Within the scope of local policies, banks and customers can negotiate to determine the specific interest rate level of newly issued first-home loans, which will help reduce residents' interest expenses and better support rigid housing demand.
Even if Guangdong Yangjiang is not among the above cities, according to interface reports, the lower limit of the first arbitrage interest rate of Yangjiang has also been adjusted to LPR to 40BP reduction. In addition, Guangdong prefecture-level cities such as Jiangmen, Yunfu, and Zhanjiang have even canceled the interest rate lower limit. On October 13, Times Finance learned from an intermediary in Zhanjiang that the other party said that the current implementation is still 4.1%.
The era of "low interest rates" for mortgage loans has begun
According to the People's Bank of China authorized the National Interbank Offering Center to announce the latest loan market quotation rate , the 1-year LPR is 3.65%, and the 5-year LPR is 4.3%. It is reported that the central bank recently lowered the interest rate of first-home mortgage by 20 basis points. According to the latest LPR, the interest rate of first-home mortgage can be as low as 4.1%.
It is worth noting that the mortgage interest rate of 4.1% is the lowest since the central bank issued the " Personal Housing Loan Management Measures for " in 1998. Previously, the "historical lowest" occurred at the end of 2008, when the 5-year LPR was 5.94%. The central bank allowed the lower limit of loan interest rates to be expanded to 0.7 times the loan benchmark interest rate, that is, mortgage loans are issued at the interest rate of 4.16%.
mortgage interest rate was directly lowered from the past 4.1% to the level below 4%, which means that the era of mortgage interest rate breaking 4 has arrived. According to relevant persons, if the interest rate for the first home loan is reduced by 0.5 percentage points, the total interest amount will be reduced by more than 80,000 yuan for a mortgage of 1 million yuan and 25 years, and about 270 yuan will be reduced each month.
Yan Yuejin said that such relaxation means that local governments, especially places with weak real estate markets, can make adjustments based on actual conditions, which means that local governments have great authority in terms of whether to relax and how to relax, and have a positive effect on creating a loose mortgage interest rate environment. However, it should be noted that some cities also allow individual second-home transactions to be recognized as first-home, and they can also enjoy such preferential policies.
On the last working day before the National Day, the official website of the People's Bank of China issued a statement saying that starting from October 1, 2022, the interest rate for the first personal housing provident fund loan will be lowered by 0.15 percentage points, and the interest rates for less than 5 years (including 5 years) and more than 5 years will be adjusted 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. After
, many cities responded positively and lowered the provident fund loan interest rate . According to 21st Century Business Herald , among first-tier cities, the interest rate of the first-home housing provident fund loan in Beijing has been lowered by 0.15 percentage points, and the interest rates under 5 years (including 5 years) and above and 5 years have dropped to 2.6% and 3.1% respectively; Shanghai's current provident fund loan interest rate has been lowered from 3.25% to 3.1%. Among second-tier cities, Hangzhou, Nanjing, Jiaxing , Huzhou , Ningbo , Wuxi and other places have also lowered. Zhengzhou, Nanning , Shijiazhuang, Tianshui , Jilin, Chengdu, Luzhou, Xiangyang, Yichang, Huangshi , Jingzhou , Suizhou , Enshi , Xiantao , Tianmen , Nanchang , Harbin, Hefei, Ma'anshan and Hainan Province have also released relevant interest rate adjustment information.
Yan Yuejin pointed out that the era of "low interest rates" for mortgage loans has begun, and the role of boosting the real estate market in the fourth quarter will indeed be more obvious.
