Guangzhou’s first home loan interest rate can be reduced to as low as 3.85%. The combined efforts of policies are expected to help the property market get off to a good start in the Year of the Dragon.

　　After a lapse of 8 months, the LPR over 5 years has been adjusted: it was reported at 3.95%, 25 basis points lower than the previous value. Since the reform of the LPR formation mechanism in 2019, the LPR for 5 years and above has been gradually reduced from 4.85% on August 20, 2019 to 3.95%. The previous 7 reductions were all between 5 and 15 basis points. This time it is one A 25 basis point downward adjustment is rare.

　　According to the current policy, the interest rate for commercial loans for first homes in Guangzhou will be reduced by 10 basis points for LPR with a term of more than 5 years, and the interest rate for commercial loans for second homes with a term of more than 5 years will be increased by 30 basis points. After this interest rate adjustment, the lowest interest rate for first home loans in Guangzhou can be reduced to 3.85%, and for second homes, it can be reduced to 4.25%. If calculated based on a loan of 1 million yuan for a first home and equal principal and interest repayment over a 30-year term, after this interest rate cut, the monthly payment of home buyers can be reduced by about 150 yuan.

　　According to CRIC statistics, in January 2024, the average transaction prices of first-hand and second-hand residences in Guangzhou were 4.13 million yuan and 2.71 million yuan respectively. Calculated based on 30% of the down payment, the loanable limits were approximately 2.89 million yuan and 1.9 million yuan respectively. , the maximum interest savings can be about 418 yuan/month and 275 yuan/month.

　　According to Guangzhou's new property market policy announced on January 27, 2024, "rent one, buy one" and "sell one, buy one" are supported. Residential families and individuals will obtain the housing rental registration and filing certificate for the property under their name in accordance with regulations, or transfer the house under their name in After the Guangzhou stock housing trading system obtains the housing information code and lists it for sale, the number of housing units under the name will be reduced accordingly when purchasing a house. That is to say, for most home buyers, even if they have a house in their name, they may still enjoy preferential interest rates on their first home loan according to the new rules of "sell one, buy one" and "rent one, buy one".

　　Xiao Wenxiao, chief analyst of CRIC's Guangzhou-Foshan region, believes that Guangzhou has optimized its real estate market control policies twice in a row before this year, including the implementation of home registration without loan registration, narrowing the purchase restriction area and lowering the purchase restriction threshold. After the LPR is lowered this time, policies can be formed. The combined efforts will help encourage demand for home purchases to enter the market, and are expected to help Guangzhou's property market achieve a "good start" in the Year of the Dragon.

　　Yangcheng Evening News reporter Fan Hanyue