a package of real estate financial measures has been accelerated
2024-09-30
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xinhua news agency, beijing, september 29th: the implementation of a package of real estate financial measures has accelerated
xinhua news agency reporters wu yu and ren jun
on the 29th, a package of real estate financial measures previously announced by the financial management department was implemented, including batch adjustments to existing mortgage interest rates, optimizing the minimum down payment ratio of personal housing loans, improving the commercial personal housing loan interest rate pricing mechanism, extending the period of some real estate financial policies, optimizing relevant requirements for affordable housing refinancing and other measures.
regarding existing mortgage interest rates, the people's bank of china guided the market interest rate pricing self-regulatory mechanism to issue an initiative on the same day. in principle, all commercial banks should uniformly implement batch adjustments to the interest rates of existing mortgage loans (including first, second and above) before october 31, 2024. for existing mortgages with a point increase above lpr minus 30 basis points, it will be reduced to no less than lpr minus 30 basis points, and not lower than the lower limit for new commercial personal housing loan interest rates currently implemented in the city where the city is located (if any) .
regarding the down payment ratio, the people's bank of china and the state administration of financial supervision jointly issued a notice that for households purchasing housing with loans, commercial personal housing loans will no longer distinguish between first and second homes, and the minimum down payment ratio will be unified to no less than 15%.
according to the notice, on the basis of the national unified minimum down payment ratio, all provincial branches of the people's bank of china and all dispatched offices of the state administration of financial supervision shall independently determine whether each city in their jurisdiction has set a minimum down payment ratio in accordance with the principle of city-specific policy implementation and the regulatory requirements of the governments of each city under their jurisdiction. differentiated minimum down payment ratio policies, and determine the lower limit of the minimum down payment ratio in each city under jurisdiction.
on the same day, the people's bank of china also announced the improvement of the interest rate pricing mechanism for commercial personal housing loans, emphasizing independent negotiation and dynamic adjustment based on market-oriented principles.
according to the latest regulations, the restriction on the mortgage interest rate repricing cycle to a minimum of one year has been removed. starting from november 1, 2024, floating rate mortgages with newly signed contracts will be consistent with other floating rate loans except mortgages, and the repricing cycle can be determined by the borrower and the borrower through independent negotiation. eligible borrowers with existing mortgage loans can adjust the repricing cycle while negotiating with commercial banks to adjust the point increase in mortgage interest rates.
on the same day, the people's bank of china and the state administration of financial supervision also issued a notice stating that the applicable period for policies supporting the reasonable extension of existing financing such as development loans and trust loans has been extended to december 31, 2026; the relevant policies on operating property loans have applicable periods. , extending the applicable period to december 31, 2026.
in addition, the general office of the people's bank of china issued a notice on the 29th stating that in order to support local state-owned enterprises to acquire completed unsold commercial buildings at reasonable prices for use as affordable housing and further enhance market-oriented incentives for financial institutions and acquisition entities, the people's bank of china decided adjust and optimize matters related to refinancing of affordable housing. for qualified loans issued by financial institutions, the proportion of re-loans issued by the people's bank of china to financial institutions will be increased from 60% to 100% of the loan principal.
previously, pan gongsheng, governor of the people's bank of china, announced a new round of financial measures to support real estate at a press conference of the state council information office on september 24, sending a clear signal to stabilize the real estate market. (over)
