China pushes for 'no need to accept mortgage'

China's Ministry of Housing and Urban-Rural Development, the People's Bank of China, the Financial Supervision Administration three departments issued a document to promote the implementation of the purchase of first house loans "do not recognize the" policy measures.

China's Ministry of Housing and Urban-Rural Development, the People's Bank of China and the State Administration of Financial Supervision jointly issued a Notice on optimizing the identification criteria for the number of housing units in individual housing loans, according to Xinhua News Agency on Friday (August 25).

The notice clearly states that when resident families (including borrowers, spouses and minor children) apply for loans to buy commercial housing, if family members do not have complete houses in their local names, regardless of whether they have used loans to buy housing, banking financial institutions will implement housing credit policies according to the first housing. This policy, as a policy tool, is included in the "one city, one policy" toolbox for cities to choose independently.

According to the relevant person in charge of the Ministry of Housing and Urban-Rural Development, this policy will enable more buyers to enjoy the down payment ratio and interest rate concessions of the first home loan, which will help reduce the cost of housing for residents and better meet the rigid and improved housing demand.

Previously, in most first-tier cities, if you buy a loan for the first house, and then buy a new house after selling the first house, it will be identified as a second house according to the loan record, and you need to pay up to 60% to 80% down payment in accordance with the standard of the second house, limiting the need to change houses to improve the purchase group.

According to the Beijing News, the Middle Finger Research Institute pointed out that optimizing the policy of housing and loan recognition can activate the replacement chain of core cities and active market transactions.

In Beijing, for example, according to the current housing and loan recognition policy, many buyers in the process of improving the replacement of housing, the down payment ratio of the second suite is up to 80%, and the mortgage interest rate is as high as 5.25%. However, if the policy is optimized, the down payment ratio of second homes can be reduced to a minimum of 35%, and the mortgage interest rate can be lowered to 4.75%.

According to Thepaper.cn, the capital market reacted immediately. The A-share real estate index rose 2.48%, and 92 of the 110 constituent stocks were in the red.

The Hang Seng Composite real Estate Construction Index rose in tandem, with more than 50 of the 76 components Posting gains. Country Garden, R&F Real Estate rose more than 5 percent, Country Garden Services, Fine Life Services, Poly Property, Longguang Group rose more than 4 percent, Longfor Group, Zhongliang Holdings, Green View China rose more than 3 percent.