Many state-owned banks in China have reported that they will stop lending for second-hand housing. (Image source: Adobe Stock)
[Look at China June 26, 2021](See a comprehensive report by Chinese reporter Ding Xiaoyu) Recently, many state-owned banks in China have reported that they have stoppedSecond-hand housing loanNews. Even if it does not stop, the lending speed is particularly slow, and the lending cycle is lengthened. At the same time, mortgage interest rates are also rising all the way, rising even as much as housing prices.Netizens said that to lock the circulation of second-hand houses is clearly to make way for the sale of new houses, so as to continue to protect them.Land Finance。
According to “China Real Estate News”, recently Bank of China, Industrial and Commercial Bank of China and other Wuhan branches have tightened housing quotas. Among them, new housing and second-hand housing provident fund business are temporarily not accepted. Corresponding to the tightening of housing loans, housing loan interest rates have risen across the board. .
In terms of second-hand housing loans, we learned from banks and intermediaries that in the short term, approvals are stricter and the loan cycle is longer. In addition, some banks have suspended the acceptance of second-hand housing business.
According to the media, some popular cities including Wuhan, Hangzhou, Guangzhou, Hefei, Chengdu, Chongqing, Nanjing, etc. have news of loan suspension. Shenzhen, Zhengzhou, Huizhou and other places are also tightening or suspending second-hand housing loans, and the scope of loan suspension is further expanding.
According to local media reports in Hangzhou, the mortgage staff of Hangzhou Zheshang Bank, Industrial Bank and other banks made it clear that the approval of second-hand housing loans in Hangzhou is currently suspended in principle.
Staff of many mainstream banks in Nanjing revealed to the media: “This year’s loan quota is limited and the control is very strict. Basically, the quota was used up in the first half of the year.”
An internal document from Zhengzhou also said that only sub-new houses within 15 years will be accepted. That is to say, old houses and small houses refuse to get loans, and at the same time second-hand house loan interest rates continue to rise.
“China Real Estate News” reported that a staff member of the Huizhou branch of China Construction Bank in charge of housing loan business said: “Since February, there has been little access to second-hand housing loan business. The main reason is that the loan time cannot be determined. According to the end of last year, the central bank The promulgated regulations on the management of the concentration of real estate credit funds have restricted the scale of commercial banks’ real estate loans, so loans have been tight since January this year.”
As of June 11, Hefei has suspended second-hand housing loans, including Shanghai Pudong Development Bank High-tech Branch, some branches of China CITIC Bank, Bank of China Changjiang Road Branch, Agricultural Bank of China Feixi Branch, Guangfa Bank, and Bohai Bank Luyang Branch.
China Everbright Bank has temporarily suspended mortgage loans in the Shenzhen area, while China Guangfa Bank said it would not accept orders. Many banks in Qingdao have informed that there is no mortgage limit for the time being.
In other places, even if there is no “stop lending”, mortgage interest rates have been rising all the way, and the rate of increase is even no less than that of housing prices.
Shell data shows that in the second quarter of China’s 72 cities, the first and second home loan interest rates increased by 17 and 15 basis points respectively, and the rate of increase was more than that in the first quarter. The current first and second set of interest rates are only 7 or 14 basis points from the November 2019 high.
According to statistics from the Shell Research Institute, 39 of the 72 key cities in May extended the mortgage lending cycle, mostly in the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area. For example, in Shanghai, the loan cycle in May was extended by 17 days to 92 days. The fastest loan cycle in June and July last year was 40 days.
According to many researchers, many banks have tight quotas, and “the suspension of loan business is related to the tightening of loan quotas.”
Some netizens said: “The second-hand housing loan stopped, indicating that the new house really can’t be sold.” “It was predicted that the last resort would be to lock the second-hand transaction in order to prevent collapse.” “I said last year: once the new home is not selling well. Immediately stop the second-hand housing loan. If the new house cannot be sold, who will sell the land to?”
Some netizens see clearly that the second-hand housing loan is stopped, “the only purpose is to make way for the sale of first-hand housing, and to protect the land and finances”, “all operations are to cut off the liquidity of the housing, forcing the people who have not yet bought a house to go. Buy new houses to revitalize the land market”.
Editor in charge: Jingxin Source: Look at China
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