Relaxing the number of mortgages

At present, the decline in property prices is still slight, but as the downward trend gradually takes shape, the government relaxes mortgages in due course and counters the cycle to help the property market softly land. The relaxation of mortgages has reduced the cost of getting on the train, but in the face of rising interest rates and other factors, the burden of mortgages will still increase.

The property price index has recently fallen, and the official website of the Department of Rating and Valuation fell for two months, falling 1.5%. The Central Plains City Leading Index (CCL) also fell for 7 weeks, returning to the level of May this year, falling 3.3. %. Although the decline in property prices is still slight, with the low-priced housing estates such as Sha Tin City One and Tin Shui Wai Kingswood Villas falling below the psychological barrier, the property market has gradually formed.

However, the current adjustment in property prices is still minor. It seems that it is still too early to relax the hotspot or mortgage. The Government can also prepare for the fall of the market in order to confirm the downturn of the property market in the future and announce the relaxation of the mortgage in time to ease the decline of the property market and respond to the public’s demand for boarding.

On the other hand, the ratio of the people’s home ownership burden (which is commonly known as the burden of mortgage payments) mentioned by the Government is one of the indicators for observing the property market. The latest third quarter is 74%, which is much higher than the long period from 1998 to 2017. 44% of the average.

First-phase cost reduction

If the government relaxes the mortgage rate, although it can reduce the cost of the buyer’s boarding, the first period will decrease, which means that the amount of mortgage loans that need to be repaid in the future will be more, and the monthly contribution pressure will increase. Take the property of $6 million as an example. In the past, 80% mortgage, interest rate 2.375%, and 25-year repayment, the monthly contribution was 21,000 yuan. If the mortgage number increased to 90%, the contribution will increase by 12% to 2.39. Ten thousand yuan.

At the same time, the current interest rate is a rising cycle. It will increase the purchase of flats by the purchasers. The effect of the relaxation of mortgages will greatly increase the contribution of home buyers. This will increase the burden on mortgages. Still not easy.