Recently, many banks in Shenzhen have implemented new mortgage policies, requiring that personal housing mortgage loans can only be disbursed after the main building has been topped off.
This sudden policy adjustment will have a significant impact on home buyers and the real estate market.
For home buyers, this means they need to bear more financial pressure.
In the past, as long as the house purchase contract was signed, the bank would issue a loan, and the buyer could immediately get the loan to pay for the house.
However, loans can now only be obtained after the main structure of the building has been topped off, which means that home buyers need to raise enough down payment and subsequent monthly payments on their own until the loan is approved.
This will undoubtedly increase their capital costs and may disrupt their home buying plans.
This policy may have far-reaching impact on the real estate market.
On the one hand, it may curb some housing speculation because investors will need more of their own funds to purchase properties, which will reduce their return on investment.
On the other hand, it may also lead to higher house prices as homebuyers will need to pay a higher down payment, which will reduce demand in the market and thus push up house prices.
This policy may also bring some positive effects.
First, it can help banks better control risks.
Issuing loans after the main structure of the building has been topped off can ensure the authenticity and stability of the property and avoid loan losses caused by problems with the developer.
Secondly, it can also promote the healthy and orderly development of the real estate market.
By raising the threshold for home purchases, speculative home purchases can be reduced and the market can be made more stable.
How should homebuyers deal with this new loan policy? First, they need to re-evaluate their home purchase plans.
If you cannot afford a higher down payment and monthly payments, you may need to postpone your home buying plans or consider other cities or regions.
Secondly, they need to have in-depth communication with banks to understand the detailed loan conditions and processes in order to make wise decisions.
Finally, they also need to pay attention to the dynamics of the real estate market so as to adjust their home buying strategies in a timely manner.
This new policy of Shenzhen Bank is undoubtedly a major blow to home buyers and the real estate market.
However, as long as we can understand the causes and impacts behind it and develop reasonable response strategies, we can make wiser decisions in the new policy environment.
