It’s not easier to get a loan even if the housing market is cold! The first-time purchase interest rate is astonishingly high at 3%, and some banks are suspending collection of goods.

The housing market has cooled down, but mortgage loans are no easier to borrow! The central bank only relaxed the loan percentage for second homes in September, but front-line local politicians revealed that the interest rate of some first-time home loans has reached 3%, and the second home loan may not get 70%, and some private banks have even suspended the loan until December.

On September 18, the central bank raised the maximum loan percentage for second-home purchases by natural persons from 60% to 70%. Although credit controls in the housing market are gradually loosened, the actual lending conditions of banks have not yet been fully relaxed, and even first-time homebuyers are facing relatively high interest rates.

Yang Yisheng, CEO of Hongguo Land Affairs Office, said that the current interest rate for first-time mortgage loans in some banks has reached 3%, and the second home loan interest rate is even above 3%, and banks have stricter review of the income-expense ratio. Even if the central bank relaxes the loan percentage for the second home, the bank will still determine the loan conditions based on the borrower's income, liabilities and repayment ability. If a home buyer has not paid off the first mortgage, both mortgages will be included in the burden assessment, and the second home may not be able to be financed at 70%.

Industrial financing demand is strong and banks are becoming more cautious in lending

Some bank staff revealed that some private banks have suspended the acceptance of housing loan cases and may extend until December. Yang Yisheng analyzed that in addition to the still high concentration of bank real estate loans, the recent strong demand for market borrowing and the increase in capital costs have also made banks more cautious about lending cases.

Yang Yisheng pointed out that driven by the development of the technology industry and the demand of manufacturers to set up factories, compared with the sluggish buying sentiment in the residential market, the market performance of factories and industrial zones has been relatively good, and corporate financing needs have also continued to increase.

He analyzed that some companies are more receptive to financing interest rates and may still be willing to borrow even if the interest rate exceeds 4%. Banks consider the cost of funds and lending efficiency, and will evaluate the benefits of different credit cases. The allocation of funds may also be more inclined to corporate financing with higher returns, making the conditions for general residential mortgage loans more stringent.

As for whether there is a chance for the housing loan market to improve next year, Yang Yisheng admitted that it is still difficult to predict at present. For people who are preparing to buy a house, in addition to comparing mortgage interest rates, they should also confirm bank loan approval conditions and funding schedules in advance to avoid discovering insufficient loans after signing the contract, which will affect the subsequent handover of the house.