News from the Financial Associated Press, January 29 (Reporter Gao Ping)In another place, the first-home loan interest rate was lowered to below 4.1%.
A reporter from the Financial Association learned from a number of banks and intermediaries in Zhengzhou that the first-home loan interest rate of some banks in Zhengzhou has been reduced from 4.1% to 3.8% starting today. This is also the first home loan interest rate in the first place after the Spring Festival holiday to break through the lower limit. Prior to this, Guangdong Zhaoqing, Shaoguan, Jiangxi Jiujiang and many other places had announced phased cancellations or lowered the lower limit of first-home loan interest rates before the Spring Festival.
Industry insiders analyzed that under the dynamic adjustment mechanism of the first-home loan interest rate, Zhengzhou is one of the 38 cities that meet the conditions for maintaining, lowering or canceling the lower limit of the first-home loan interest rate in the first quarter. The reduction of the first-home loan interest rate of some banks in Zhengzhou is in line with expectations. It is possible that other banks may follow up the reduction in the future, and this reduction will help reduce the cost of home buyers. In addition, with the establishment of a dynamic adjustment mechanism for first-home loan interest rates, it is expected that more eligible cities will lower their first-home loan interest rates.
The first-home loan interest rate of some banks in Zhengzhou has dropped to 3.8% from today. The intermediary said that the down payment of real estate can be 20%
Some banks in Zhengzhou lowered the first-home loan interest rate to 3.8% starting today.
The staff of Zhongyuan Bank’s Zhengzhou Perpetual Loan Center told a reporter from the Financial Associated Press that the bank’s first-home loan interest rate has dropped from 4.1% to 3.8%, which will be implemented from today (January 29). “But this policy is only applicable to Zhengzhou.” The staff member added that the bank’s second-home loan interest rate remains unchanged at 4.9%, and the down payment for the first home is still 30%.
A real estate agent in Zhengzhou also said that some banks have lowered the first-home loan interest rate to 3.8%. In addition to the reduction in mortgage interest rates, according to the above-mentioned real estate agency in Zhengzhou, the down payment for some real estate projects has also declined. “At present, the down payment of the first home loan can be 20%.” The intermediary also said, “However, not all real estate can achieve 20% down payment, and the 20% down payment of the first home has to be selected.”
The staff of many banks in Zhengzhou said that they have not received any notice of the adjustment of the mortgage interest rate for the time being, and the bank’s mortgage interest rate still implements the pre-holiday policy. A staff member of a branch of a major bank in Zhengzhou said that the bank’s first-home loan interest rate is still 4.1%, and the down payment is still 30%. A staff member of another branch of the big bank also said that he had not received the notice of the adjustment of the mortgage interest rate, and the down payment was also 30%.
In addition, the staff of a branch of another big bank in Zhengzhou area also said that they have not received any notice of adjustment for the time being. The interest rate of the first home loan is still 4.1%, with a down payment of 30%; the interest rate of the second home loan is 4.9%.
As for some banks in Zhengzhou lowering the first-home loan interest rate, Yan Yuejin, research director of Shanghai E-House Real Estate Research Institute, said that Zhengzhou’s policy is generally in line with the housing work spirit of the central bank and the Ministry of Housing and Urban-Rural Development. Interest rates, and Zhengzhou is exactly in line with the list of 38 key cities sorted out at that time. This reduction is in line with expectations and will help reduce the cost of buying houses.
According to the notice issued by the central bank and the China Banking and Insurance Regulatory Commission on January 5 on the establishment of a long-term mechanism for the dynamic adjustment of the first set of housing loan interest rate policies, the cities where the sales prices of new commercial housing have declined for three consecutive months month-on-month and year-on-year can be maintained in stages, Lower or cancel the lower limit of the local first-home mortgage interest rate policy. Based on housing price data from September to November 2022, 38 of the 70 cities met the conditions for adjusting the lower limit of the interest rate in the first quarter. Zhengzhou is on the list of 38 cities.
Before the festival, many places have phasedly canceled or lowered the lower limit of first-home loan interest rates
In fact, shortly after the announcement of the establishment of a dynamic adjustment mechanism for the first-home loan interest rate policy was issued, Jiujiang in Jiangxi Province and Shaoguan in Guangdong Province lowered or canceled the lower limit of the first-home loan interest rate in stages before the Spring Festival. According to the report of the Shell Research Institute, after the dynamic adjustment of the first-home loan interest rate, as of January 16, Taiyuan and Tangshan have lowered the first-home loan interest rate to 3.8% in eligible cities.
On January 18, the Jiangxi Jiujiang City Government website issued an announcement on adjusting the lower limit of the city’s first housing commercial personal housing loan interest rate. The lower limit of the interest rate of individual housing loans will be adjusted to LPR-30BP, which will be implemented from the next day of the announcement.
In addition, Zhaoqing, Shaoguan, Zhanjiang, Huizhou, Yunfu, Jiangmen and other cities in Guangdong have implemented a phased cancellation of the lower limit of commercial personal housing loan interest rates for the first house since January 18. “Removing the lower limit on the interest rate of commercial personal housing loans for the first home will help further guide banking institutions to lower mortgage interest rates, better support rigid housing demand, and promote the stable and healthy development of the real estate market.” Industry insiders said.
In the eyes of industry insiders, recently, the No. 1 Economic Boosting Document in many places regards boosting housing consumption as an important task. With the establishment of a dynamic adjustment mechanism for the first-home loan interest rate, it is expected that more eligible cities will lower the first-home loan interest rate in the future. In addition, the current housing credit policy adjustments are mainly focused on supporting rigid housing demand. In the future, demand-side stimulus policies will be deterministic, continuous, and gradual. Subsequent incremental policies involving “four restrictions”, down payment ratios, and second-home certification are expected to further introduced.