The first city in the central region has also followed suit, and cities in the Pearl River Delta have densely implemented "house recognition but not loan recognition"
Dongguan, Guangdong Province announced that the "house recognition but not loan recognition" policy will be implemented from midnight on September 1st this year.
On August 31st, Dongguan released a notice on optimizing the criteria for determining the number of housing units in personal housing loans in our city, stating that when a household applies for a loan to purchase commercial housing, regardless of whether they have used the loan to purchase housing, banking and financial institutions will implement the housing credit policy for the first set of housing.
On August 31st, the Office of the People's Government of Huizhou City issued a notice on optimizing the criteria for determining the number of housing units in personal housing loans in our city, which was published online. The notice clearly states that starting from September 1st, when residential families apply for loans to purchase commercial housing, if their family members do not have a complete set of housing under the 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.
On August 31st, the Housing and Urban Rural Development Bureau of Zhongshan City issued a notice on optimizing the criteria for determining the number of housing units in personal housing loans in our city. It stated that when a household applies for a loan to purchase commercial housing, regardless of whether they have used the loan to purchase housing, banking and financial institutions will implement the housing credit policy for the first set of housing.
Earlier on August 30th, the General Office of the Guangzhou Municipal People's Government issued a notice on optimizing the standards for determining the number of housing units in personal housing loans in our city, leading the official announcement in first tier cities that "housing is recognized but not loans are recognized". On the evening of the same day, the Shenzhen Housing and Urban Rural Development Bureau also issued a civil announcement to implement the policy of "recognizing houses but not loans" from August 31st.
At present, "recognizing a house but not a loan" has been implemented in five cities in the Pearl River Delta.
On August 31st, Wuhan, the first city in central China, also issued a notice stating that when a resident family applies for a loan to purchase commercial housing in our city, if their family members do not have a complete set of housing under the name of Wuhan, regardless of whether they have used the loan to purchase housing, banking and financial institutions will implement the housing credit policy for the first set of housing. This notice will come into effect on September 1, 2023.
According to a report by Changjiang Daily, "buying a house" or "buying a loan" is the standard used by banks to evaluate the first and second homes when issuing mortgage loans. Among them, "buying a house and buying a loan" is the strictest, referring to the situation where even if the first home loan has been fully repaid, it is still considered to have purchased a second home due to a loan record, and therefore a higher proportion of down payment and mortgage interest rates are implemented. At present, when purchasing houses in housing restricted areas in Wuhan, the policy of "recognizing houses and recognizing loans" is implemented.
Yin Yuejian, a real estate economist in Hubei Province, believes that the "housing and loan recognition" policy will recognize some homebuyers with loan records as having a second home when changing houses, resulting in a significantly higher down payment ratio and interest rate for subscription, and a corresponding increase in purchasing costs. According to the policy of "recognizing a house but not a loan", for improved homebuyers, as long as they do not have a house under their name, they can be recognized as the first home. This allows some homebuyers with a loan record to enjoy the standard of the first home, reducing the cost of purchasing a house.
Yin Yuejian introduced that since the middle of last year, the market transaction volume data of new and second-hand houses in Wuhan has basically remained stable. Wuhan is gradually entering the era of existing houses, and the "house recognition but not loan recognition" policy is not only aimed at new house buyers, but also a great benefit for second-hand house buyers. "Regardless, the implementation of the new policy in Wuhan will play a certain positive role in boosting confidence in the real estate market in Wuhan."