Although the U.S. Federal Reserve announced that it would suspend interest rate increases in September, there is still a chance to raise interest rates once in the second half of the year. The actual interest rate in Hong Kong increased to 4.125%. Affected by further interest rate hikes, many developers and people in the industry had hoped that the government would "remove the stimulus" or introduce rescue measures in the "Policy Address" at the beginning of the year. Although there is no news about "removal", it is true that There are new measures to relax the property market. The mortgage insurance company announced that the mortgage ratios for eligible first-hand pre-construction properties will be relaxed. What impact will it have on developers and buyers?
Before the relaxation of the new mortgage guarantee, in the past, buyers who purchased new pre-construction properties could only purchase properties with a price of less than 6 million yuan. This means that if they want to undertake a mortgage with a high percentage of 80% or 90% for a property with a price of more than 6 million yuan, the buyer may You need to use the mortgage plan provided by the developer, that is, the "Breathing Plan" to help buyers "get into the car." After the new mortgage relaxation, eligible unfinished properties with a property price of less than 10 million yuan can be purchased with a mortgage of up to 90% of the mortgage. For properties priced below NT$15 million, 80% can be achieved; for properties priced below NT$30 million, 70% can be achieved, which is in line with the situation of completed properties.
Developers are not required to set aside loan funds
For developers, since the relaxation of mortgage guarantees can already cover most of the needs of first-hand uncompleted properties in the market, there is no need for developers to provide various "breathing plans" to buyers. Therefore, developers do not need to set aside a sum of funds to lend money to buyers, and can use the funds more effectively in business, which is a good thing for developers.
Buyers do not need to use the "Breathing Plan" to attend meetings, which also effectively reduces the situation where unexpected events occur due to the completion of the "Breathing Plan" and cannot be smoothly transferred to the bank for meetings, effectively protecting buyers. If readers still have impressions, in mid-2022, the mortgage ratio provided by the developer in Ruifeng, a new development in Cheung Sha Wan that was still owned by China Evergrande (03333), happened to be temporarily reduced from 90% to 80%; The interest-free and payment-free period will be changed from two years to one year. As a result, the developer temporarily changed the plan content, causing many buyers to lose their budget. This is because buyers need to prepare additional down payments before they can attend the meeting, so buyers who are unable to raise the money are faced with the prospect of losing their money at any time.
If you buy an eligible off-the-plan property, you can go directly to the meeting
The author also mentioned at that time that the mortgage plans provided by developers were basically unsupervised. Even if the plans were temporarily changed, buyers could not fight for or complain.
Although it is rare for developers to temporarily change their mortgage plans, I believe no one wants to take more risks when buying a property. After the new mortgage guarantees are relaxed, buyers who purchase eligible pre-construction properties can directly go to the meeting, which undoubtedly provides additional protection for buyers.