Centaline Mortgage: Banks cut mortgage rebates to reduce capital cost pressure

There are rumors in the market that large banks have further reduced mortgage cash rebates. Wang Meifeng, managing director of Centaline Mortgage, pointed out that the situation of "interest rates being higher than mortgage rates" has lasted for nearly a year since May last year. This could be good news for buyers because it means they can get better deals on their homes.

Banks cut mortgage rebates to reduce capital cost pressure

Wang Meifeng said that the bank's move to cut mortgage rebates may put some pressure on buyers' funding costs, but it can also be seen as a regulatory measure to help stabilize the real estate market. She suggested that buyers should choose a suitable mortgage product based on their actual situation and not blindly follow trends.

The relationship between interest rates and interest rates

When choosing a mortgage product, in addition to paying attention to rebate offers, buyers should also pay attention to the relationship between interest rates and mortgage interest. Wang Meifeng pointed out that if the interest rate is higher than the mortgage interest rate, buyers may need to pay more interest when repaying the loan. Therefore, all factors should be fully considered when choosing a mortgage product.

How should buyers respond?

How should buyers respond to banks cutting mortgage rebates? Wang Meifeng suggested that buyers can cope with the pressure of capital costs by increasing their down payment or choosing a mortgage product with a lower interest rate, which can reduce the repayment burden.

Conclusion

Overall, the bank's move to cut mortgage rebates may be good news for the real estate market and help stabilize market order. Buyers should carefully consider all factors when choosing a mortgage product and choose a product that suits them to reduce the pressure on capital costs.