National Policy on Home Loans Boosted Consumer Confidence
In anticipation of the implementation of the national policy that will further loosen the restriction on home loans have boosted consumer confidence in purchasing properties even when the new policy is not yet officially implemented in the city. Two real estate developments are opening up for sale in Shenzhen were soon sold out and other are being pursued as home buyers are rushing to buy due to the policy change.
The new national policy released by the People’s Bank of China stated that a second property will require a lower percentage of down payment paired with lower interest rates for home loans only when a home buyer carries no outstanding home payments, this measure shows a significant relaxation of the limitations set for home loans that previously required buyers to make a down payment of 70 percent along with a higher home interest rate compared with the national benchmark interest rate
Presently four banks have implemented the new policy a spokesperson from the Bank of China stated that the bank’s Shenzhen branch already implemented the new home policy based on the national requirement. Also their branch in Meilin in Futian is offering a 3 percent discount for home loan interest rate and minimum down payment for home buyers who meet the given criteria,
Other banks are also ready to implement the policy but has yet to receive formal notice in which they say will be implemented within the week.