the property insurance ceilings of 80% and 90% of mortgage loans will be relaxed to help first-time home buyers
The Secretary for the Financial Services and the Treasury, Liu Yixiang, said that from October 17 to November 22, about 1,300 applications were approved by the insurance company, more than nine of which became first home buyers.
The relaxation measures include raising the ceiling of the maximum property price of 90% of the mortgage from 4 million yuan to 8 million yuan, and the ceiling of the 80% mortgage mortgage price from 6 million yuan to 10 million yuan. Chen Zhenying, a member of the Legislative Council of the financial sector, pointed out in written questions that after the introduction of the relevant measures, many owners of residential units that originally had bids ranging from 5 million to 10 million yuan immediately “closed” or raised their bids; some scholars believe that if the property market reverses, If the property price is reduced by 10% or more, the owners concerned will be reduced to negative assets. Ask whether the government has assessed the moral hazard of the measure.
timely review of the effectiveness of the plan
Liu Yixiang responded in writing that the amendments to the insurance plan are designed to provide more appropriate support for first-time home buyers or property exchangers who have the ability to repay but lack sufficient first installment. The fluctuations in the property market are affected by many different factors. The insurance companies will closely monitor the status of the property market and review the effectiveness of the plan in a timely manner.
He added that although the property price caps under the insurance plan have been adjusted, borrowers still need to meet certain eligibility criteria when applying for insurance plans, including a 50% contribution income ratio and additional insurance costs. To mitigate risk. Credential insurance companies have additional eligibility criteria for borrowers who apply for more than 80% of the mortgage, such as the applicant must be a first-time home buyer and a fixed salary.
According to the information of the insurance company, a total of 14,803 insurance applications were approved in the first October of this year, involving a total amount of 59.184 billion yuan.
Refusing to allow MPF contributions to buy property
As for a Member who asked if it is possible to allow first-home buyers to use MPF contributions to buy properties to alleviate the housing problem, Liu Yixiang once again rejected the proposal. He emphasized that allowing MPF scheme members to use MPF contributions to buy a home would weaken the protection available after retirement. He also pointed out that, as of the end of last year, each MPF scheme member had an accrued interest of RMB 186,000 on average, which had a limited practical effect on home ownership. If property prices fall, the owner may disguise his retirement savings and bear extra debt.
In addition, the government announced a series of relief measures earlier, including 80% of the credit guarantee products under the SME financing guarantee scheme. SMEs that borrow can apply for interest repayment but not principal. According to the insurance company, more than ten applications have been approved since the new relief measures were introduced in September, but the amount involved has not been disclosed.
According to the evidence, from the beginning of June to mid-November, that is, during the period when the anti-revision storm occurred, the approved applications for “80% credit guarantee products” were 1,345, involving loans of 6.6 billion yuan, up 70% and 94% year-on-year respectively.