Experts recommend extending mortgage repayments to 40 years! Netizen: Retire and continue to pay?

　　Sino-Singapore Jingwei, August 27th (Wang Yuling and Wei Wei) On the 27th, the topic "Experts recommend extending the mortgage repayment time to 40 years" topped the hot search on Weibo.

Dong Fan, director of the Real Estate Research Center of Beijing Normal University, said in an interview with the media that in order to reduce the burden of buying a house for young people, it can be achieved by reducing the proportion of down payment, only paying interest in the first five years, and extending the loan repayment time.

This remark has caused heated discussions among netizens. What do you think?

　　Weibo screenshot

Proposal to extend mortgage repayment time to 40 years

　　Recently, Dong Fan pointed out in an interview with Fenghuang.com that the down payment ratio for buying a house in China is now 30%, which is relatively high in the world.

Other countries are generally 10%, and even 5%.

It may be difficult for China to drop to 10% all of a sudden, but it can be considered to drop to 20%, so that the process for young people to accumulate enough down payment will be shortened. 

　　In addition, Dong Fan believes that the loan repayment period can also be extended.

Domestic loans are generally available for 30 years, can you consider extending it to 40 years?

In this way, the pressure on young people will be greatly reduced.

"Some people say that if you extend the loan repayment time, you may have to repay the mortgage when you retire, but it doesn't matter if you repay the loan. Because you still have a pension in retirement, and when you retire, this part of the loan will account for your income. The percentage is also very small." Dong Fan said. 

　　Regarding Dong Fan's remarks, netizens have mixed comments. Some netizens said: "Why do you still need to pay off the mortgage when you retire and live on the pension?"

　　Weibo screenshot

　　Some netizens also analyzed the problem and said that there may be a problem of extending mortgage interest, which will cause a greater burden on young people.

Sino-Singapore Jingwei calculated an account. Taking the loan of 1 million yuan, the first home loan interest rate of 4.1%, and the monthly equal principal and interest repayment as an example, if the loan is 30 years, the monthly monthly payment is 4,832 yuan, and the total interest payment is 739,500 yuan. ; If the loan is 40 years, the monthly payment is 4242 yuan, and the total interest payment is 1.0361 million yuan.

It can be seen that the monthly monthly payment is reduced by 590 yuan, but the total interest is increased by nearly 300,000 yuan. 

Should the down payment ratio be lowered in many places, should the loan period be extended?

　　Sino-Singapore Jingwei noted that the executive meeting of the State Council held a few days ago proposed to allow local "one city, one policy" to flexibly use credit and other policies to reasonably support rigid and improved housing needs.

On August 22, the LPR with a term of more than 5 years for mortgage interest rates was significantly reduced by 15 basis points, freeing up room for the downward trend of mortgage interest rates in various places.

At present, the lower limit of mortgage interest rates for the first and second homes of commercial banks in many places has been reduced to 4.1% and 4.9%.

Real mortgage rates in many cities hit their lowest levels since 2009. 

　　Regarding the loan term of the mortgage, in general, the bank stipulates that the maximum loan term of the personal housing loan is 30 years, and some regulations do not exceed 25 years, depending on the borrower's age, repayment ability, housing age and other factors. Negotiated.

In addition, the maximum term of personal commercial housing loans shall not exceed 10 years.

　　Dong Ximiao, chief researcher of China Merchants Union Finance, once wrote that in 1995, the "Interim Measures for the Administration of Self-employed Housing Loans of Commercial Banks" was officially promulgated, which stipulated the maximum term of personal housing loans to 10 years.

The measures were revised in 1997 to extend the maximum period to 20 years, and in 1999 the maximum period was extended to 30 years.

　　In an interview with Sino-Singapore Jingwei, Dong Ximiao said that the loan term is essentially a commercial behavior and is the independent choice of the bank.

　　He further pointed out that some banks have corresponding regulations, such as requiring that the loan period and the lender's age cannot exceed a certain value, such as the lender's 40-year-old, and the loan time cannot exceed 70.

　　"The longer the loan term is, the better. The interest on the loan for 40 years is much higher than that for 30 years. There will also be the question of whether there is enough repayment ability in the later period. Therefore, the choice of loan term and down payment ratio needs to be based on the lender's income. Make arrangements according to the situation and income expectations. If the current income is not high and the monthly repayment pressure is high, the loan term can be appropriately extended, but it is acceptable to pay more interest to the bank; if the current income is high enough, I do not want to retire later. Repayment, the loan term can be shorter." Dong Ximiao said. 

　　Since the beginning of this year, there has been a new round of adjustment of real estate policies in various places, and many places have begun to adjust the proportion of real estate down payment.

On August 25, the People's Government of Changzhi City, Shanxi Province issued the "Notice on Printing and Distributing the Implementation Opinions on Promoting the Virtuous Cycle and Healthy Development of the Real Estate Industry in Changzhi City (Trial)", which stated that it would guide commercial banks to implement differentiated housing credit policies, and households The minimum down payment ratio for the purchase of the first home is 20%. 

　　According to incomplete statistics from the media, recently, Chengde, Huizhou, Zhanjiang, Shanwei, Suzhou and other regions have adjusted the down payment ratio for house purchases.

For example, for commercial personal housing loans for residential households purchasing ordinary housing for the first time, the minimum down payment ratio has been lowered from 25% to 20%.

At the same time, some regions have adjusted the down payment ratio for second homes. 

　　Dong Ximiao's analysis of Sino-Singapore Jingwei said that the down payment ratio for the first home in many places is now 20%, including some urban provident fund loans. The down payment ratio has also dropped to 20%.

"The down payment ratio should be maintained at 20% and 30%, which is fully considered, mainly because the leverage ratio of the residential sector is not expected to be too high. The down payment ratio is not as low as possible. Maintaining a certain down payment ratio is one of the ways to prevent systemic financial risks. This is a practice." Dong Ximiao said.

Multiple banks disclose real estate lending strategies

　　Recently, it coincided with the intensive disclosure of interim performance reports by banks. Many banks were asked about the strategy of real estate loans when they held a performance conference. Many banks judged that the overall risk of real estate loans is controllable.

　　Zhu Jiangtao, vice president of China Merchants Bank, said that the high point generated by the quarter during the year has passed, and the risk of the entire industry will stabilize in the follow-up.

Regarding personal housing mortgage loans, Wang Jianzhong, vice president of China Merchants Bank, said that the growth in the first half of this year was less than expected, which was highly correlated with the market.

　　Regarding the future trend of real estate, Hu Gang, vice president and risk director of China CITIC Bank, pointed out at the performance conference that in the short term, the risks of the real estate industry have not been completely relieved, and market confidence has yet to be restored. In the medium and long term, there is confidence The real estate will land safely and develop healthily

　　Hu Gang mentioned that there are two aspects worth paying attention to at present. First, the data of sales recovery is not too obvious, which is very important for the healthy development of the entire real estate industry in the future.

Second, due to the differentiation of enterprises, those companies that are slow to sell, heavy in debt, and poorly managed may have some impact on the entire real estate industry, which is what we are continuing to pay attention to. 

　　For real estate incremental projects, Hu Gang said that he

　　Guo Shibang, vice president of Ping An Bank, said at the performance meeting that the bank will strictly follow the policy of "housing, not speculating," and continue to implement the regulatory requirements to effectively distribute real estate loans in a balanced and orderly manner, focusing on supporting security. Development and operation of housing and rental housing, mergers and acquisitions of real estate projects in line with policy orientation, selective support for the development of ordinary commercial housing in areas with real demand support, and active participation in the underwriting and investment of M&A bonds for real estate companies.

(The opinions in this article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)

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