Entering October, Beijing, Nanjing, Hangzhou, Wuxi, Ningbo, Dongguan and other places have officially announced the reduction of the first-home provident fund loan interest rate.
Relevant adjustments actually follow the pace of the central bank. On September 30, the central bank decided to reduce the loan interest rate of the first personal housing provident fund by 0.15 percentage points from October 1, 2022, for less than 5 years (including 5 years) and more than 5 years. The interest rates were adjusted to 2.6% and 3.1% respectively, and the interest rate policy for the second set of personal housing provident fund loans remained unchanged.
This is the first time the central bank has lowered the loan interest rate for the first housing provident fund for individuals in more than seven years.
Wang Xiaoqiang, chief analyst of Zhuge Housing Data Research Center, said that the reduction of the provident fund loan interest rate this time is mainly for the first home, which once again reflects the support of the credit policy for rigid demand, and the sales side of the property market is expected to be further repaired.
1 million mortgages are less than 82 yuan per month, and new interest rates can be implemented next year for existing loans
The cut in interest rates on provident fund loans means lower mortgages.
According to estimates by Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, a 30-year loan of 1 million yuan, with equal principal and interest, has a monthly payment of 4,352.06 before the rate cut, and 4,270.16 yuan after the rate cut, a decrease of 81.9 yuan.
In addition, there are still many home buyers who are concerned about whether the first-home provident fund loan interest rate devolved before October 1 this year can enjoy the above policies?
The answer is yes, but it will not be adjusted until January 1 next year.
Taking Beijing as an example, the reporter called the 12329 housing provident fund hotline to learn that homebuyers who applied for a housing provident fund loan for the first home in Beijing before October 1 this year will maintain the previous interest rate from now until the end of the year, and will be charged after January 1, 2023. Executed at the new interest rate.
Yan Yuejin believes that the lowering of provident fund loan interest rates can reduce the cost of just-needed homebuyers. In addition, new provident fund policies have been released in many places before, for example, families with multiple children can increase the provident fund loan amount, etc. The superposition effect of policies will further release market demand.
"Three-pronged approach" to reduce the cost of buying a house and prompt those in need to enter the market
In fact, lowering the first-home provident fund loan interest rate is only one of the measures in this round of property market regulation.
Before the National Day, in addition to the above policies, on September 29, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued a notice to decide to adjust the differentiated housing credit policies in stages. Qualified city governments can independently decide to maintain, lower or lower the housing credit in stages before the end of 2022. The lower limit on the interest rate of newly issued first housing loans was cancelled; on September 30, the Ministry of Finance and the State Administration of Taxation jointly issued the "Announcement on Personal Income Tax Policies for Supporting Residents to Exchange Housing", stating that from October 1 this year to December 2023 On the 31st, taxpayers who sold their own houses and re-purchased houses in the market within 1 year after the current houses were sold will receive tax refunds for the personal income tax they have paid for selling their current houses.
In conclusion, these three policies all have one thing in common—that is, to further reduce the cost of house purchase, including loan cost, tax cost, etc., to attract more needy house buyers to enter the market.
The Northeast Securities Research Report believes that the three policies this time focus on interest rate cuts and tax cuts on the demand side, which can better reduce the cost of housing purchases for rigid and improved needs; secondly, the policy has a strong "phase" feature, focusing on boosting this year's The vitality of transactions in the fourth quarter prompted buyers to act on the sidelines and catalyzed the chain reaction of house purchases. At the same time, in line with the industry cycle, the policy exit timing was set to avoid excessive overdraft demand in the long-term cycle.
Soochow Securities Research Report predicts that the fourth quarter of this year will be an important observation period for the real estate market. If sales do not pick up, there is a possibility of further lowering the provident fund loan interest rate. Under the optimistic scenario, real estate investment will gradually stabilize by the end of next year.
Beijing News Shell Finance reporter Pan Yichun