The banking industry will strictly implement differentiated housing credit policies
Recently, multiple departments have reiterated that real estate regulation policies will continue to be strictly enforced. However, at the same time, the policy side has quietly increased the credit support for first-time homebuyers and affordable housing projects. Recently, the four major banks - Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), and China Construction Bank (CCB) proposed that, in order to implement differentiated housing credit policies, the interest rate for first-home loans will be fully reduced to the benchmark rate, but the down payment ratio will remain unchanged.
It is understood that recently, the four banks - ICBC, ABC, BOC, and CCB held a symposium in Beijing to thoroughly study the spirit of the Central Economic Work Conference and the National Financial Work Conference, seriously analyze the current situation of the real estate market, jointly research the key work of commercial banks improving real estate financial services, and propose to continue to comprehensively implement differentiated housing credit policies.
The meeting proposed to effectively meet the loan needs of residents' families purchasing self-occupied ordinary commercial housing for the first time, reasonably balance pricing, and reasonably price according to the risk principle within the benchmark interest rate range. The meeting also emphasized the need to effectively prevent credit risks and strictly enforce the policy regulations on the minimum down payment ratio for personal housing loans.
Industry insiders analyzed that on one hand, real estate regulation policies are aimed at curbing abnormal increases in housing prices and combating speculative behavior, while on the other hand, measures are needed to differentially protect the basic housing needs of the public. This consensus reached at the meeting means that the four major banks will no longer increase the interest rates for first-home loans, highlighting the differentiation of housing credit policies. However, whether there will be another "discount" on the interest rate for first homes depends on the different risk assessments of each bank.
The aforementioned person pointed out that real estate regulation policies have always supported the purchase of self-occupied first homes. Keeping the down payment ratio unchanged indicates that the overall measures of real estate regulation policies are still strict, especially as recent declines in housing prices have created some potential risks. A higher down payment ratio helps prevent the occurrence of non-performing loans.
In addition, the meeting also proposed to actively support qualified development enterprises in constructing ordinary commercial housing with market demand, increasing the effective supply of ordinary commercial housing; and supporting government-led, public rental housing-based affordable housing construction in accordance with the principle of financial sustainability. At the same time, the meeting also proposed to effectively improve real estate financial services, conscientiously abide by all regulations and business processes of credit management, and improve loan approval efficiency.