Beijing adjusts and optimizes the purchase policy, and the down payment ratio of the first suite is reduced to 30%
On December 14th, Beijing Municipal Commission of Housing and Urban-Rural Development issued "Further Optimizing and Adjusting Real Estate Policies in this Municipality to Better Support Rigid and Improved Housing Demand". The full text is as follows:
On July 24th, the Political Bureau of the Central Committee held a meeting and pointed out that it is necessary to adapt to the new situation that the relationship between supply and demand in the real estate market has undergone major changes, adjust and optimize real estate policies in a timely manner, better meet the rigid and improved housing needs of residents, and promote the stable and healthy development of the real estate market. On August 18th, the Ministry of Housing and Urban-Rural Development and other departments issued the Notice on Optimizing the Criteria for Determining the Number of Housing Units in Personal Housing Loans. On August 31st, the People’s Bank of China and other departments issued the Notice on Adjusting and Optimizing the Differentiated Housing Credit Policy, which unified the lower limit of the minimum down payment ratio of the first and second sets of commercial personal housing loans to not less than 20% and 30%, and adjusted the lower limit of the interest rate policy of the second set of commercial personal housing loans. According to the spirit of the meeting and the requirements of the document, on September 1st, Beijing optimized and adjusted its real estate policy, and introduced the policy of "recognizing houses but not loans".
In order to implement the spirit of the Central Economic Work Conference, on the basis of adhering to the positioning of "housing and not speculating", according to the recent changes in the real estate market in Beijing, combined with the implementation of the new urban master plan, on December 14, The Beijing Municipal Commission of Housing and Urban-Rural Development, the Beijing Taxation Bureau of the State Administration of Taxation, the Beijing Branch of the People’s Bank of China, the Beijing Supervision Bureau of the General Administration of Financial Supervision and the Beijing Housing Provident Fund Management Center jointly issued the Notice on Adjusting and Optimizing the Ordinary Housing Standards and Individual Housing Loan Policies in this Municipality (hereinafter referred to as the Notice), optimizing the identification standards of ordinary housing (hereinafter referred to as ordinary housing), lowering the minimum down payment ratio of newly issued individual housing loans and extending the longest loan period; At the same time, the self-discipline mechanism of market interest rate pricing in Beijing has also adopted a self-discipline resolution to lower the lower limit of interest rate policy for newly issued commercial personal housing loans, which better supports the rigid and improved housing demand in Beijing.
The "Notice" clarifies that the criteria for the identification of ordinary houses should be optimized. The current standard of general housing in Beijing was released in 2014, which has a certain gap with the actual market situation, and the public’s response is relatively concentrated. This adjustment, combined with market changes, has appropriately raised the construction area and price standard of ordinary houses. After adjustment, the plot ratio of residential buildings is above 1.0 (inclusive), the single building area is below 144 square meters (inclusive), the transaction price in the 5th ring is below 85,000 yuan/square meter (inclusive), the transaction price in the 5th-6th ring is below 65,000 yuan/square meter (inclusive), and the transaction price outside the 6th ring is below 45,000 yuan/square meter (inclusive). The proportion of ordinary houses in the city has increased to about 70%, and more families will be able to enjoy the preferential policies of value-added tax when housing is transferred.
The "Notice" proposes to reduce the minimum down payment ratio of new mortgage loans and extend the loan term. On the basis of the unified national policy, the minimum down payment ratio of the first set of housing personal housing loans (including commercial personal housing loans and housing provident fund personal housing loans, the same below) in Beijing will be reduced to 30%; The minimum down payment ratio of individual housing loans for two sets of housing will be reduced to 50% in six urban districts and 40% in six non-urban districts. Lowering the minimum down payment ratio reduces the threshold for residents to purchase housing, which is conducive to better meeting the demand for rigid and improved housing. At the same time, this adjustment has cancelled Beijing’s strict control over the mortgage period during the excessive upward trend of housing prices, from the current maximum of 25 years to 30 years.
In addition, this adjustment will also lower the lower limit of the new mortgage interest rate policy of commercial banks. This adjustment is the lower limit of interest rate policy for newly issued commercial personal housing loans, that is, the new lower limit of interest rate policy will be implemented for newly issued commercial personal housing loans from December 15. After adjustment: the lower limits of the first and second sets of interest rate policies in Chengliu District are not less than the quoted loan market interest rate of the corresponding term plus 10 basis points, and not less than the quoted loan market interest rate of the corresponding term plus 60 basis points respectively; The lower limits of the first and second sets of interest rate policies in non-urban six districts are not less than the quoted interest rate of the loan market for the corresponding term and not less than the quoted interest rate of the loan market for the corresponding term plus 55 basis points respectively. Banks should reasonably determine the interest rate level of each new mortgage according to the policy lower limit determined by the self-discipline mechanism of market interest rate pricing in Beijing, combined with the operating conditions of their institutions, customer risk conditions and other factors, and in accordance with the principles of marketization and rule of law.



