It's settled! Beijing implements the policy of "recognizing houses but not loans"
Following Guangzhou, Shenzhen, and Shanghai, Beijing has officially announced the implementation of "recognizing houses but not loans". Just now, the Beijing Municipal Commission of Housing and Urban Rural Development, the Business Administration Department of the Central Bank, and the Beijing Supervision Bureau of the State Administration of Financial Regulation jointly issued a notice to optimize the standards for determining the number of housing units in personal housing loans in our city from today on. That is to say, Beijing will implement the policy of "recognizing houses but not loans" throughout the city.
According to the Notice on Optimizing the Criteria for Determining the Number of Housing Units in Personal Housing Loans, according to the new criteria, if a resident family applies for a loan to purchase commercial housing and their family members do not have a complete set of housing under their local name, regardless of whether they have used the loan to purchase housing, banking and financial institutions will implement housing credit policies for the first set of housing.
In simple terms, it means that regardless of whether the family has previously used commercial loans to purchase a house or has any loan records, as long as all members of the family have no housing in Beijing at the time of purchase, they can meet the recognition criteria for the first home and apply for a housing loan for the first home.
The new policy of "recognizing houses but not loans" supports the reasonable housing needs of residents, and will bring practical effects to Beijing and non Beijing households with demand for replacement and improvement housing, which is commonly referred to as improvement housing needs. From the second-hand housing market in Beijing in recent years, the demand for improvement has exceeded half.
Specifically, for a residential family, what benefits can be brought by "recognizing a house but not a loan"?
For example, Mr. Li, a citizen, has a house under his family name that was purchased with a loan in 2017. Now, because he has two treasures at home, Mr. Li wants to change to a bigger house. According to the previous policy, even if Mr. Li sells the house under his name after paying off the loan due to his loan history, he can only consider it as a second home when applying for a commercial loan. After implementing the new policy of "recognizing a house but not a loan", Mr. Li can now "sell small to buy large" and apply for a commercial loan, which can be considered as his first home.
According to the current policy in Beijing, the down payment ratio for the first home shall not be less than 35%, and the down payment ratio for the second home shall not be less than 60%, with a difference of 25%, based on the calculation of ordinary residential properties. Calculated at 6 million yuan for a house, it means you can save 1.5 million yuan in the down payment stage.
"In August, 10960 second-hand housing units were signed online in Beijing, which remained sluggish year-on-year. The market expects policy adjustments." Zhang Dawei, Chief Analyst of Beijing Zhongyuan, stated that the policy of "recognizing houses but not loans" is an important measure to support reasonable housing demand and ensure stable and healthy development of the real estate market, which is in line with market expectations.