On September 29, the Ministry of Finance, together with the People's Bank of China and the State Administration of Financial Supervision, issued the "Notice on Implementing the Interest Subsidy Policy for Residential Home Purchase Loans" (hereinafter referred to as the "Notice"), clarifying that from October 1 this year, the interest discount policy for residential home purchase loans will be implemented nationwide to reduce the interest burden on commercial personal housing loans for families who are newly purchasing their first homes.
"The mortgage discount policy can reduce the financial pressure on those who just need to buy a house and accelerate the entry of people who have plans to buy a house." Yang Changlong, senior investment consultant of Shaanxi Jufeng Investment Information Co., Ltd., said in an interview with a reporter from Securities Daily.
As of October 7, it has been a week since the policy was implemented. The reporter noticed that after the policy was introduced, all parties took active actions, and many places have successively launched the first mortgage discount loans.
On September 30, six major banks including Industrial and Commercial Bank of China and Agricultural Bank of China issued announcements to actively promote the implementation of interest discount policies for residents’ home purchase loans. Many banks stated that they will adopt the "no need to apply and enjoy" processing method to optimize the processing process, simplify the processing procedures, and promote the implementation of the policy as soon as possible.
News of the first business landing are also coming. On October 1, CCB Tianjin Branch successfully issued a subsidized housing loan, which was the bank’s first business to implement the policy of discounting interest on residential home purchase loans.
The WeChat public account of ICBC Heilongjiang Branch announced on October 3 that on the first day of the implementation of the policy, Qitaihe Branch successfully launched the first personal second-hand housing loan with interest discount. Ms. Li from Qitaihe City became the first beneficiary customer of the policy of ICBC Heilongjiang Branch. Ms. Li purchased her first second-hand house and applied for a loan of 150,000 yuan. The loan period is 10 years and she can enjoy an annual fiscal discount of 1%. The discount period can be up to 5 years. The entire business process is smooth and efficient. According to calculations, the accumulated interest savings in 5 years are about 5,800 yuan, which effectively reduces the repayment burden of working families.
For another example, the WeChat public account of the ICBC Hainan Branch announced on October 5 that on the morning of that day, the ICBC Hainan Branch successfully issued the first mortgage discount loan, which was the "first loan" to be implemented in Hainan since the implementation of the policy of discount interest on residential home purchase loans.
"This interest discount policy has clear requirements for the objects of support, mainly for first-time homes, and the floor area of the purchased housing does not exceed 120 square meters, and the price of the purchased housing does not exceed 1.5 million yuan. This condition setting clearly shows that the policy will give greater support to the rigid demand for home purchases or the demand for first-time homes." Yan Yuejin, deputy director of Shanghai Yiju Real Estate Research Institute, analyzed to a reporter from Securities Daily. The logic is that in the current property market cycle, if rigid demand is not activated, it will affect subsequent replacement demand and improvement demand. The design of this support object helps to open up the starting point of the property market cycle and avoid the entire housing consumption chain being blocked due to the lack of rigid demand.
"The current market situation is actively boosting, house prices are stabilizing, and the pace of home buyers has accelerated significantly. The successive launch of good houses, good products, and good projects, coupled with the mortgage discount policy and previous measures such as down payment reduction, interest rate reduction, and provident fund support, as well as the recent 'Golden Nine and Silver Ten' property market marketing efforts, have all had a positive effect on activating housing sales and promoting housing consumption." Yan Yuejin said.
Reporter Han Yu
