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on the evening of september 29, shanghai released a new real estate policy to optimize housing credit policies.

the new policy proposes to implement the national policy on lowering existing mortgage interest rates and guide commercial banks to steadily and orderly reduce the existing mortgage interest rates to close to the new loan interest rates to further reduce the mortgage interest expenses of home buyers.

currently, the interest rate for first home loans in shanghai is lpr-45bp. based on the lpr of 3.85% in september this year, the interest rate for newly issued first home loans is 3.85%-45bp, or 3.4%.

currently, there are two scenarios for the existing mortgage interest rates for shanghai’s first homes: one is the home purchase interest rate from july 24, 2021 to december 14, 2023, which is lpr+35bp, or 4.2%; the other is the home purchase interest rate in december 2023 from the 15th to may 27, 2024, it is lpr-10bp, which is 3.75%.

assume that the lender's existing mortgage interest rate is lpr+35bp, that is, 3.85%+35bp=4.2%. after adjustment, it will be reduced to around 3.4% for the new first-home loan interest rate, and the loan principal will be repaid with a loan principal of 1 million yuan and equal principal and interest over a 30-year period. calculated using this method, the borrower can save 455.9 yuan in interest per month, and a total of 164,100 yuan in interest expenses.

after the implementation of the new deal, the minimum down payment ratio for first-home personal housing loans was reduced from 20% to 15%, a decrease of 5 percentage points; the minimum down payment ratio for second-home commercial personal housing loans was reduced from 35% to 25%, a decrease of 10 percentage points. the differentiated policy area (the entire lingang new area and the six administrative regions of jiading, qingpu, songjiang, fengxian, baoshan and jinshan) was reduced from 30% to 20%, a decrease of 10 percentage points.

taking the purchase of a first home with a total price of 5 million yuan and a second home with a total price of 10 million yuan as an example, the first home with a total price of 5 million yuan requires a down payment of 1 million yuan before the adjustment. after this adjustment, it is 750,000 yuan, which is the first house purchase price. people save a down payment of 250,000 yuan; a second home with a total price of 10 million yuan requires a down payment of 3.5 million yuan before the adjustment, and the adjustment is 2.5 million yuan, saving a down payment of 1 million yuan for the home buyer.

"reducing the down payment ratio of home buyers again will have a more positive effect on both rigid and improvement housing needs. especially for improvement housing demand, the threshold for home purchase has been further lowered." yan yuejin, vice president of shanghai eju real estate research institute express.

cui guangcan, director of the real estate and urban development research center of shanghai normal university, believes that this policy optimization starts from the demand side to promote job-housing balance and further support the demand for improved housing. in addition, on the credit side, the minimum down payment ratio for second-home loans is implemented in a differentiated manner, and the housing purchase restriction policy is optimized in a differentiated and regional manner.

since the beginning of this year, new policies have been issued frequently in the shanghai property market, but the market recovery is still weak. according toanjukeaccording to shanghai data, 17,884 second-hand housing units were sold in shanghai in august, a decrease of 12.2% from the 20,380 units sold in july. in addition, new home transaction volume also declined. in august, a total of 13,709 new houses were sold in shanghai, a decrease of 14.8% from 16,087 units in july.

on the evening of the 29th, after shanghai issued the new policy, guangzhou clearly canceled all purchase restrictions, becoming the first first-tier city to completely withdraw from the purchase restriction policy. subsequently, shenzhen optimized the zoning housing purchase restriction policy and adjusted the minimum down payment ratio for the first home to 15%.

yan yuejin predicts that after the national day holiday, the pace of adjustment and optimization of home purchase policies across the country will accelerate. various new policies will create a better foundation for the good development of the real estate market and continue to build a "real estate bull".