Budget | Relax the mortgage guarantee 12 million buildings can borrow 80% minimum income to 90,000 to pass the stress test

Financial Secretary Chen Maobo today (23rd) released a new "Budget", including the relaxation of the mortgage price ceiling, first home buyers applying for mortgage loans of up to 80%, and the property price ceiling will be raised from 10 million to 12 million , and the property price ceiling for applying for a mortgage loan of up to 90% has been raised from the current 8 million to 10 million.

Purchase of 12 million properties down 2.4 million in the first phase

In other words, taking the purchase of a 10 million-dollar residential unit as an example, the maximum borrowing is 9 million yuan, and the down payment is reduced from 2 million yuan to 1 million yuan.

The basic down payment for a property of 12 million yuan has been reduced from 6 million to 2.4 million yuan, greatly reducing the entry threshold and the first phase requirements.

The Hong Kong Mortgage Insurance Co., Ltd. also announced that the expansion of the application scope of the Mortgage Insurance Plan is that the price of 12 million to 19.2 million is eligible for properties, but the relevant mortgage loan is capped at 9.6 million.

(provided by the insurance company)

Zhang Shengdian: The income requirements have been greatly increased

Zhang Shengdian, a visiting associate professor of the Department of Real Estate and Construction at the University of Hong Kong, believes that relaxing the upper limit on the guaranteed property price will activate the transaction volume of residential properties with a property price of 10 million to 12 million. Residential-like units are expected to outperform the market.

However, he also pointed out that although 80% of the buildings of 10 million to 12 million can be borrowed, the income requirements for applicants have also been relatively significantly increased, and it is necessary to carefully calculate personal affordability and stress tests.

In fact, after relaxing the mortgage threshold, if you buy a residential property with a value of 12 million yuan, the down payment will be reduced to 2.4 million yuan. Based on the monthly payment of H+1.3% and the monthly interest rate of 0.16%, the monthly payment is 32,948 yuan. However, if you pass the stress test, the minimum monthly income requirement is 90,847 yuan.

(refer to the picture below)

(provided by Centaline Mortgage)

Zhuang Jinhui: The monthly repayment included in the premiums reaches 40,000

Zhuang Jinhui, CEO of Star Valley Mortgage Referral, also pointed out that after relaxing the mortgage rate, the minimum income requirement will also increase.

For example, in the past, a property of 12 million yuan could only be borrowed at most 50%. Calculated with a 30-year repayment period, the monthly income of about 57,000 yuan can successfully pass the stress test; but if the full 80% can be borrowed, the income requirement will increase. To more than 90,000 yuan, after including the premium, the monthly repayment can reach 40,000 yuan.

In addition, since the mortgage insurance company is more rigorous than banks in approving mortgage insurance, the borrower needs to have a stable and continuous income, and it will be difficult for self-employed people who earn commissions to apply. Residential purposes, etc., are also strictly considered.

He reminded that under the new policy, the maximum loan of 19.2 million yuan is 60% or 9.6 million yuan, but prospective owners should also consider the mortgage insurance cost. Mortgage, the mortgage premium rate is 1.84%, which is about 1.2% of the loan amount after taking into account the premium discount, and only 1.2% premium is required to borrow 10% more mortgage, which is relatively expensive.

Zhuang Jinhui also pointed out that at present, many new properties in the market are more than 10 million yuan. It is expected that under the new policy, more landlords who have been mortgaged by developers can transfer their mortgages to the bank "Shanghui". It is expected that there will be more incentives for landlords in the future. If the construction period plan is selected, the supply-to-construction period ratio will further decrease.

Chen Yongjie: The property market is "small and less spicy" and is expected to stimulate the transaction of mid-price properties

As for Chen Yongjie, vice chairman of the Asia Pacific region and president of the residential department of Centaline Real Estate, the government has relaxed the mortgage insurance threshold in response to changes in the property market. 20-30% of buyers entered the market, stimulating the small and medium-sized property market and offsetting the decrease in transaction volume under the epidemic. He expects that the transaction volume of properties below 12 million yuan will increase by 30%.

Budget｜Relaxing the upper limit of mortgage insurance and introducing progressive rates to see the housing market measures Budget｜Legislation to prohibit landlords from recovering rent from tenants in designated industries for up to six months Economic Development Commission Budget | The new budget will take counter-cyclical measures to total more than 170 billion to stimulate GDP by 3%