Some banks claim to have followed up on the implementation, and multiple cities plan to reduce the down payment ratio for second homes. City | Optimization | Down payment ratio for second homes | Market | Reduction | Adjustment | Support | Policy
Many regions are studying adjusting their personal housing loan policies. According to Securities Daily reporters, multiple cities such as Fuzhou, Xiamen, Xi'an, and Nanchang plan to adjust and optimize their purchase restriction policies in the near future, reducing the lower limit of down payment for second homes. Regarding this, the reporter called multiple local banks and branches to inquire about the situation. Most banks have stated that they have not yet received any notification of the adjustment of the down payment ratio for second homes, but some banks have also stated that they have followed up on the implementation.
Experts say that unlike other policies, the implementation of the down payment reduction policy has a wide range of impacts and has a driving effect on both the new and second-hand housing markets, thereby forming support for the real estate market. Looking ahead, there is still a lot of room for support policies in the real estate industry.
Multiple regions plan to lower the down payment ratio for second homes
Securities Daily confirmed from some banks in Xiamen that since August 16th, the down payment ratio for second homes in Xiamen has decreased from 50% to 40%; The lower limit of the interest rate for commercial loans for second homes has also been adjusted from an 80 basis point increase in the loan market quotation rate to a 60 basis point increase, that is, the interest rate for second home loans has been reduced from the original 5% to 4.8%.
In addition to Xiamen, there are also expectations of policy relaxation in hot second tier cities such as Fuzhou and Xi'an recently. Recently, relevant departments in Fuzhou have been studying the optimization and adjustment of housing credit policies. It is understood that Fuzhou plans to reduce the down payment ratio from the current 50% to 40% for homebuyers who have already owned a house and have not yet paid off their mortgage and are reapplying for personal housing loans. Xi'an is also studying the adjustment of personal housing loan policies, aiming to reduce the down payment ratio of personal housing loans and the lower limit of loan interest rates. Nanchang has recently introduced new policies for the real estate market, with a minimum down payment ratio of 20% for first-time home purchases and a minimum down payment ratio of 30% for second home purchases.
However, when a reporter from Securities Daily called the personal loan departments of some banks in the above-mentioned regions, the relevant personal loan personnel stated that they have not yet received the relevant notices issued by the head office. The personal loan manager of a state-owned bank in Xi'an told reporters that he has not yet received any notice of the adjustment of the down payment ratio and loan interest rate for a second home. Currently, the down payment ratio for a second home is still 60%, and the interest rate is 80 basis points higher than the LPR.
Continuous introduction of policies to optimize the real estate market
On July 24th, after the Politburo meeting of the Central Committee of the Communist Party of China set the tone for real estate policies, multiple departments such as the Ministry of Housing and Urban Rural Development, the National Development and Reform Commission, and the Central Bank issued positive signals, injecting confidence into the market. The Ministry of Housing and Urban Rural Development has clearly stated that it will further implement policy measures such as reducing the down payment ratio and loan interest rate for purchasing the first home, improving the tax and fee reduction for purchasing affordable housing, and providing personal housing loans with "no need to subscribe for housing". Subsequently, the housing and construction departments of several cities, including Beijing, Shanghai, Guangzhou, and Shenzhen, spoke out in support of the demand for rigid and improved housing. In addition, multiple cities have introduced new policies, such as expanding differentiated purchase restrictions in some areas of Hangzhou and suspending sales restrictions in Zhengzhou.
Fuzhou, Xiamen, Xi'an, Nanchang and other cities plan to adjust and optimize their purchase restriction policies in the near future, reducing the lower limit of down payment for second homes. It can be seen that various regions are actively implementing relevant measures.
Wang Qing, Chief Macro Analyst of Dongfang Jincheng, told Securities Daily reporters that these measures reflect the principle of implementing policies based on local conditions, and further increase support for essential and improvement needs in various regions. This means that after the central government makes new adjustments to the supply and demand situation in the real estate market, industry support policies are being comprehensively intensified.
In response to the continuous adjustment period in the real estate market, Chen Wenjing, Market Research Director of China Index Research Institute, told Securities Daily reporters that from the perspective of future policy optimization, the current regulatory policies in first tier cities and core second tier cities are relatively strict, and there is still room for optimization in purchase and loan restrictions. Restrictive policies in ordinary second tier and third and fourth tier cities may be further relaxed or even cancelled. For first tier and core second tier cities, policy optimization may still be gradually promoted. In terms of purchase restrictions, optimizing purchase conditions and expanding the scope of non restricted purchase areas are important directions. At the same time, in conjunction with the birth policy, support will be provided for families with multiple children and those who choose to purchase limited units. In terms of loan restrictions, we will optimize both housing and loan recognition, and reduce the down payment ratio to support the release of reasonable housing demand.
Wang Qing stated that there is still a lot of room for future support policies in the real estate industry. Firstly, the LPR quotation for more than 5 years may be further lowered. Secondly, in terms of adjusting the interest rates of existing housing loans, considering that the current policy approach has changed from "support and encouragement" to "guiding banks to adjust the interest rates of existing personal housing loans in an orderly manner in accordance with the law", it is imperative to reduce the interest rates of existing housing loans in the second half of the year. Finally, after the regulatory authorities clarified at the end of July that "recognizing a house but not a loan", the next focus is to further relax purchase and loan restrictions in first tier and second tier cities. The above policies, although limited in scope, have a strong guiding effect on the expectations of the real estate market and are of great significance in promoting the stabilization and recovery of the real estate industry in a relatively short period of time.
