20% down payment ratio reappeared in the mortgage market!
On February 17, the first financial reporter learned from several real estate agencies in Heze, Shandong that recently, Heze’s housing loans have been adjusted – the minimum down payment ratio has been reduced to 20%, and the interest rate of the first house loan has been reduced from the previous 5.95% to about 5.6%.
Specifically, a number of large state-owned banks, including China Construction Bank Corporation(601939) , Bank Of China Limited(601988) , Agricultural Bank Of China Limited(601288) , Industrial And Commercial Bank Of China Limited(601398) , have reduced the down payment ratio of individual housing loans in the city. Among them, the down payment ratio of “no house, no loan” buyers has decreased from the previous lowest 30% to the lowest 20%.
However, it depends on personal qualifications. “If the qualification is good, such as good personal credit investigation, and the running income meets the requirements, the minimum down payment can be reduced to 20%.” A loan intermediary told the first financial reporter that at the same time, the city’s mortgage interest rate has also been reduced. At present, the mortgage interest rate of the first house has been reduced from the previous 5.95% to about 5.6%.
According to the notice on adjusting the down payment ratio of individual housing loans issued by CCB online, for households with no housing (excluding rural collective land housing, the same below) and no individual housing loan record, if they apply for loans to buy ordinary housing, the down payment ratio can be implemented by 20%.
At the same time, for the resident families who have no personal housing loan records and have settled or actually own one set of housing but have no loan records, if they apply for loans to buy ordinary housing, the down payment ratio can be 25%; For households who actually own one set under their name and have corresponding house purchase loan records, if they apply for loans to buy ordinary houses, the down payment ratio can be 30%; For households with two or more houses without personal housing loan records or with housing loan records but settled, if they apply for loans to buy houses, the down payment ratio can be 40%.
It is reported that the above notice will go into effect from February 14. According to other media reports, with regard to the reduction of the down payment ratio of individual housing loans, the staff of relevant outlets of many local state-owned banks said that the policy was implemented in Heze City.
In the view of insiders, under the housing loan concentration policy in 2021, the practice of 20% down payment is very few. The Heze policy may be the first shot to reduce the down payment of commercial bank loans, which is also related to the changes of the current real estate market situation and financial situation.
Yan Yuejin, research director of the think tank center of E-House Research Institute, said that at present, all localities should make policy adjustments according to the actual situation. From a pragmatic and responsible perspective, take the initiative based on the new situation and new problems of the local real estate market, and actively activate the demand for reasonable housing consumption.
In fact, since the fourth quarter of 2021, many cities across the country have optimized and adjusted real estate related policies, such as increasing the amount of provident fund loans, reducing the down payment ratio of provident fund loans, reducing housing loan interest rates, issuing house purchase subsidies, etc. Anhui Province has also proposed to reduce the down payment ratio for real estate and other consumption, but the overall effect is not obvious.
In the latest monetary policy implementation report, the central bank said that it firmly adheres to the positioning that houses are used for living rather than speculation, does not use real estate as a short-term means to stimulate the economy, adheres to stabilizing land prices, house prices and expectations, implements the prudent management system of real estate finance, increases financial support for Housing leasing, and protects the legitimate rights and interests of housing consumers, Better meet the reasonable housing needs of property buyers and promote the healthy development and virtuous cycle of the real estate market.
“At present, there are many local policies, but the impact is not strong. Some places are still limited to policies such as mortgage interest rate adjustment. From the actual process, reducing the down payment is the best measure.” Yan Yuejin said.
Chen Wenjing, deputy director of the index division of China Index Research Institute, also said that the housing loan restriction policy has a great impact on home buyers. If Heze reduces the down payment ratio and implements it, it will be a positive signal, which is expected to drive the market sentiment better. The wait-and-see mood of home buyers may change, and the confidence of home buyers will be boosted to some extent. At the same time, more cities may follow suit in the future, especially the third and fourth tier cities with weak urban fundamentals and high market adjustment pressure.
