Many cities have lowered mortgage interest rates and speeded up approvals
Recently, a number of media reports, many places across the country to lower mortgage rates, speed up lending.Many cities, including Shanghai, Guangzhou and Suzhou, saw first-home mortgage interest rates below 5 percent.In addition to falling interest rates, mortgage lending cycle is also shortening.According to the survey, the speed of bank lending in Beijing, Shanghai, Hangzhou and other cities has significantly accelerated.Among them, the fastest lending time in Beijing and Hangzhou is only one week, Shanghai is about 2-3 weeks, and some banks in Hefei can lend money as soon as 3 days.Not only that, in the process of our visits to intermediaries and some real estate sales staff learned that some banks in Shanghai have not emphasized the bank statement, only income proof, if the mortgage within 500,000 can be approved in seconds.The first quarter of 2022 is coming to an end. Since 2022, the warm wind of the policy has been blowing frequently, the overall credit is loose, and some urban regulation and control are loosened.But at present, it seems that the effect of stimulating demand has not been achieved, and the weak situation of the consumer side has not been greatly improved.Yuan-denominated loans increased 1.23 trillion yuan in February, down 125.8 billion yuan from a year earlier, according to financial data released by the People’s Bank of China on March 11.By sector, household loans fell by 336.9 billion yuan, of which short-term loans fell by 291.1 billion yuan and medium – and long-term loans by 45.9 billion yuan.Loans to enterprises (public institutions) increased by 1.24 trillion yuan, of which short-term loans increased by 411.1 billion yuan, medium – and long-term loans by 505.2 billion yuan, and bill financing by 305.2 billion yuan.Loans from non-banking financial institutions increased by 179 billion yuan.In terms of sales data, data from the National Bureau of Statistics shows that in the first two months of 2022, the sales area of commercial housing was 157.03 million square meters, down 9.6% year on year.Sales of commercial housing totaled 1,545.9 billion yuan, down 19.3%.The growth rate of both was the lowest in seven years since 2016 and only higher than that of The first and second months of 2020.Figure: National monthly commercial housing sales area, sales sum and its year-on-year trend (unit: 10,000 square meters, 100 million yuan)National Bureau of Statistics, 02 cities mortgage interest rates fell, the part of less than 5%, in fact, since the end of 2021, statistics and risk monitoring, head of silver circ Liu Zhongrui held in the scio has said at a news conference, to urge the Banks to carry out the real estate development loans, individual housing loan regulatory requirements, the demand for credit guarantee good just need group.”Support should be given to first-time home buyers in terms of down payment ratios and interest rates.Since then, the five-year LPR has remained low from 2022 to the present.The latest LPR data released on March 21, 2022 showed that the 1-year and 5-year LPR in March 2022 were unchanged from the previous month at 3.7% and 4.6%, respectively.From the trend point of view, since December 2021, the 5-year LPR began to decline, the most direct impact is the mortgage of home buyers, LPR will drive down the interest rate of personal housing loans.Under its influence, mortgage interest rates in many cities have dropped to below 5% recently.Specifically, Beijing Construction Bank’s latest new house mortgage interest rate of 5.15%(LPR+55 basis points) compared with the previous Beijing first set 5.2% down 0.05%.Some banks in Shanghai have lowered their mortgage rates for the first and second homes to 4.95% and 5.65%, respectively, from the previous 5% and 5.7%. In Guangzhou, the four major banks had lowered mortgage rates at the end of February, lowering the first home rate to 5.4% from 5.6%.Second home from 5.8% down to 5.6%, currently basically stable, but there are some equity banks, city banks continue to decline on this basis, the lowest can be 5.2%-5.3%, second home mortgage interest rate is 5.4%-5.5%.In addition to first-tier cities, other hot cities have also seen the phenomenon of mortgage interest rate reduction, such as hangzhou local banks second-hand housing first suite loan interest rate generally from a month ago about 5.7%, down to the current 5.3% or so;Mortgage rates for second homes have been lowered by 0.4 percentage points from 5.9 percent to 5.5 percent.Some banks in Suzhou have lowered their first-home loan rates to 4.6%, the same as LPR, but high-quality customers are required to take advantage of the offer.Loan rates for first home buyers in Chengdu were cut by 69 basis points and those for second home buyers by 34 basis points.Nanjing part of the bank’s second – hand housing mortgage interest rate fell to 5.4%.After zhengzhou issued a notice on promoting the Virtuous cycle and healthy development of the real estate industry, some banks reduced the interest rate on second-hand housing loans from 5.3% to 4.9%.Some banks in Xiangyang, Hubei province, also lowered mortgage rates by 40 to 45 basis points.Taian, Linyi and Yantai in Shandong province also lowered interest rates for first homes to around 5 percent and for second homes to around 5.3 percent.While some mortgage interest rates have been lowered, the lending speed of many cities has also been significantly accelerated.Beijing has further accelerated its lending cycle from 4-6 months to 1-2 months by the end of 2021, with some banks able to make loans within a week.Shanghai’s mortgage approval cycle has also been further accelerated to 2-3 weeks, on the basis of shortening from more than 4 months to 2 months at the end of 2021.Individual banks in Guangzhou and Hangzhou can make loans in as little as a week, as Beijing can.In our research, hefei has the shortest lending time. According to a bank staff, “As far as I know, some banks in Feidong can lend money in three days at the earliest, of course, the specific requirements of the bank still depend on.”It is worth noting that in our interview with intermediaries and some real estate sales staff learned that some banks in Shanghai have not emphasized the bank statement.A sales clerk in a sales office told us that the banks that cooperate with their projects do not need to be covered by double flow now:”The notice that we get here now is, do not need 2 times more salary to cover, 1 times more is ok, specific have to see how much money you borrow, proof data also do not force to ask for half a year more than bank running water, the income proof that has company official seal is ok.Loan time is quite fast, generally a month will be able to come down, fast half a month on the line.”Second-hand housing, a brand intermediary said that Shanghai is still “three prices on the low” principle, but there can be space to fight for on the amount.”Down payment should still be difficult, poor little can fight for a moment, but the second-hand house or impossible as thirty percent directly as bridal chamber, we this area now generally is almost half, lending is fast a lot, we here is to look at the cooperative bank queuing, which quickly with which,The soonest I can do is about 2 weeks.There are special circumstances, for example, some people are basically full money to buy, only about 500,000 yuan of commercial loans, that can be approved in seconds, not that the day, is the speed of lending.”From the current point of view, all major cities have reduced mortgage interest rates, accelerate the phenomenon of mortgage approval speed, even first-tier cities and second – and third-tier hot cities have joined in.Even in some cities, the loan interest rate is equal to that of LPR, which is undoubtedly good news for many newly needed home buyers.With the continuous loosening of residential mortgage loans, entering April, some cities may usher in the release of partial demand, but in the short term, the market will still be in the game of regulating the loosening of credit and housing confidence of residents.