The central bank and the China Banking and Insurance Regulatory Commission established the first dynamic adjustment mechanism for housing loan interest rate policies

Previously, the lower limit of the first-home loan interest rate was 20 basis points lower than the market quoted interest rate, that is, -0.2%. In the future, various regions can increase the dose on their own. This policy is indeed not small, and the number of cities that benefit is also large. According to the data on commercial housing prices in 70 large and medium-sized cities released by the National Bureau of Statistics every month, there are 38 cities in which the sales prices of new commercial housing have dropped continuously both month-on-month and year-on-year in the past three months. Among them, there are 13 second-tier cities, namely Dalian, Fuzhou, Harbin, Lanzhou, Nanning, Xiamen, Shenyang, Shijiazhuang, Taiyuan, Tianjin, Wuhan, Changchun, and Zhengzhou; there are 25 third- and fourth-tier cities, namely Bengbu, Beihai, Changde, Dandong, Guilin, Huizhou, Jilin, Jining, Jinhua, Jinzhou, Jiujiang, Luoyang, Mudanjiang, Pingdingshan, Qinhuangdao, Shaoguan, Tangshan, Wenzhou, Wuxi, Xiangyang, Xuzhou, Yangzhou, Yichang, Yueyang, Zhanjiang.

It is also worth noting that on January 5, six departments including the Shenzhen Municipal Housing and Construction Bureau issued the “Work Plan for Promoting Second-Hand Housing “Transfer with Mortgage” Mode in Shenzhen.” The “Plan” clarifies that the “transfer with mortgage” mode of second-hand housing refers to the mortgaged real estate. In the case of not repaying the loan in advance, the transfer, re-mortgage and new loan are issued, so as to realize the repayment of the old loan with the purchase price (using the buyer’s mortgage). house purchase funds to repay the seller’s bank loan). Different from the previous “redemption first and then transfer” model, in the “transfer with mortgage” model, the seller does not need to return the original mortgage to complete the transfer registration, and the buyer can transfer the mortgage to obtain a financial loan, which simplifies the transaction process of second-hand housing , which reduces transaction costs, is conducive to improving the vitality of the second-hand housing market and promoting a virtuous circle in the real estate market. The background to the introduction of this policy is that according to data from the Shenzhen Municipal Bureau of Housing and Urban-Rural Development, a total of 21,701 second-hand housing units will be sold in Shenzhen in 2022, a 46.68% decline from the 2021 volume, which is close to half. This is the second consecutive year that the transaction volume of second-hand housing has been halved. In 2021, the transaction volume of second-hand housing in Shenzhen fell by 58.8%.

With all the benefits, the current policy is clearly aimed at stabilizing the real estate market and promoting economic recovery. However, the ultimate determinant of the direction of China’s real estate market is the purchasing power of consumers, and this is not a problem that these policies can solve. It can only be said that for rigid demand, 2023 is definitely a better time to make a move than the previous two years, so let’s make a move when it’s time to make a move!

In the past two years of real estate recession, various places have actually begun to relax real estate policies. One of the options is to relax the purchase restriction or loan restriction policy. Another very important thing is to adjust the loan interest rate. For house buyers, The level of loan interest rate has a great influence on the amount of loan repayment, which is an important consideration before buying a house. In order to stimulate the real estate market, various places have continuously adjusted the first-home loan interest rate for this reason. Now the central bank and the China Banking and Insurance Regulatory Commission are preparing to establish a dynamic adjustment mechanism for the first-time home loan interest rate policy. It will be more convenient to adjust in the future. It sounds more scientific.

It seems that the criteria for the second house to recognize the house and subscribe for the loan will become a new focus. Many homeless households with improved housing are also counted as second homes, which is really unreasonable.