Beginning on July 24, the Shanghai first home loan interest rate has been adjusted from 4.65% to 5%, an increase of 35 basis points; the second home loan interest rate has been raised from 5.25% to 5.7%, an increase of 45 basis points. With the increase in mortgage interest rates this time, Shanghai’s first home mortgage interest rates have entered the “5” era.
For a set of properties worth millions and ten million yuan in Shanghai, how will this increase in mortgage interest rates affect the market and home buyers?
Recognition scene of a real estate in Shanghai Picture source: Photo by reporter Wu Ruofan
The first home loan interest rate enters the “5” era
In fact, before the adjustment, the interest rates for the first and second homes in Shanghai were 4.65% and 5.25%, respectively, which are not high compared to the mortgage rates in Shenzhen (the first and second homes were 5.10% and 5.60%, respectively). The adjusted Shanghai first home loan interest rate has entered the “5 era”, but it is still lower than that of Shenzhen.
With the increase in mortgage interest rates, the cost of buying a house has also increased.
Based on a commercial loan of 2 million yuan and 30 years of equal principal and interest, the first home will increase the interest by 210,000 yuan, and an additional monthly repayment of 583 yuan will be required. It is the second home buyer who is more affected. The same applies to the loan of 2 million yuan and 30-year equal principal and interest. After the adjustment, the interest will increase by 270,000 yuan, and an additional monthly payment of 750 yuan is required.
At the same time, the overall process of mortgage review will be longer. According to the reporter of “Daily Economic News”, due to the continuous tightening of real estate regulation, many banks are very strict in reviewing housing loans. In addition to providing down payment vouchers and salary records, borrowers also need to provide the bank where the down payment is located for nearly half a year.的流水. Among them, the salary turnover needs to double the monthly payment amount.
“Buyers with a tight budget card are likely to increase the down payment or lower the purchase budget.” Zhang Bo, Dean of 58 Anju Guest House Property Research Institute, told reporters that the interest rate adjustment is for new mortgage loans. The actual guiding interest rate for the 5-year LPR has not been adjusted, and currently remains at 4.65%, so it has no impact on the interest rate of existing mortgage loans.
In addition, this increase in mortgage interest rates is combined with the background of the current Shanghai property market regulation and regulation. Not only has the cost of buying a house increased, but the monthly online signing is also very tight.
“Currently, the number of online subscriptions given by the trading center every month is limited. Our project is allocated only 5 sets (in July) and 30 sets in August.” Huang Hao, the sales director of a popular real estate in Shanghai, told reporters that the developer is If you want to sign an agreement early, you can pay back early, but the current policy does not allow it. The project has 364 units. According to the current quota of online signing, all online signings will not be completed until the end of the year.
Overweight regulation to cool down the Shanghai property market
“Although the mortgage interest rate has been fine-tuned this time, people who want to buy a house will still buy it.” Zhang Bo said that buyers who just “stepped on the line” policy implementation time may be psychologically affected.
The buyer Zhang Li told the “Daily Economic News” reporter that she bought the house in June this year and had already paid the down payment and also submitted an application for a house purchase loan to the bank. However, due to the absence of online signatures, bank loans have not entered the actual review process for a long time, and can only be calculated at the latest increase in interest rates this time.
Another house buyer, Li Hua, was suspended by the Housing Management Bureau because of the illegal sale of the project he bought. As a result, he was unable to apply for the online signing process smoothly.
According to Li Hua, the Shanghai Baoshan Shangshi Offshore Elite Project she purchased was opened as early as June 10, but the owner was suspected of violation of house selection due to “missing 50 suites for no reason”. The Housing Management Bureau intervened and suspended the investigation. The project was signed online. As a result, she and the 170 home buyers in the same batch were able to complete the online sign-off and complete the mortgage before July 15, but they are still stuck in the online sign-off process.
“A lot of people buy houses, and the money is calculated and stuck. It is a bit to be able to borrow more. Now that the mortgage interest rate has increased, it still has a lot of impact on this part of the people who are stuck.” Zhang Li told reporters. , Due to more stringent mortgage review and longer time, the monthly mortgage amount has increased, and their salary flow needs to be increased by 1,000-1200 yuan/month accordingly.
Zhang Bo said that this policy has sent a signal to the market that housing loans are still strictly controlled and will continue to be implemented in strict accordance with the “two red lines” policy. At the same time, the increase in mortgage interest rates serves as a signal for market regulation to increase, indicating that the Shanghai property market may cool down to a certain extent. It is expected that the real estate “new fever” will change in the second half of the year. Therefore, it is recommended that buyers have longer-term expectations and be prepared for a long-term period.
(At the request of the interviewee, Huang Hao, Zhang Li, and Li Hua in the text are all pseudonyms)
(Original by Maggie Real Estate, if you like, please follow meikedichan on WeChat)
Cover image source: every photo by reporter Wu Ruofan
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