Securities Times reporter Duan Jiuhui
What signal? Industrial and Commercial Bank of China has urgently suspended its home purchase tax loans for the Shanghai area. Will more banks follow suit?
On January 25, Securities Times and Brokerage China reporters learned that ICBC’s installment loan products for the purchase of first-hand, second-hand and foreclosure houses and other personal residences (excluding commercial use) in the Shanghai area were banned. Full stop. Previously, the bank's loan amount for this product could reach up to 10% of the property value, with an annualized interest rate of about 3.4%. The loan was used to pay taxes and fees required in the home purchase process by swiping a card in installments.
The reporter visited and found that another local bank in Shanghai with similar products can still accept related business. However, the bank's personal loan manager reminded reporters, "We must hurry up. It has been tightened now and may be stopped at any time."
The reason why the loan business related to the property market has changed is that the Shanghai property market has experienced After the "hot and dry" year of 2020, comprehensive regulation was ushered in a few days ago. Following the promulgation of the "Shanghai Ten Measures" of the new property market regulation policy on January 21, Shanghai's property market regulation package was implemented one after another on January 25, and foreclosure houses were included in purchase restrictions.
Shanghai house purchase tax installment loan
Stopped
“10,000% confirmed, can’t be applied for.” On January 25, ICBC Shanghai A regional personal loan manager confirmed to the Securities Times·Brokerage China reporter that the bank’s house purchase tax installment loan product in Shanghai has been suspended since January 21, and the product is no longer accepted in the entire Shanghai region.
The so-called "house purchase tax installment" was first known to the market as the "Juyidai" special installment credit card of ICBC Shanghai Branch, which allows ICBC to satisfy the bank's customers to pay housing transaction taxes. For large consumption needs such as home furnishings, home improvement, home appliances, property expenses, etc., the card will be issued with credit to meet household installment payments, housing tax installment payments, etc. During this period, the issuance of the card was temporarily suspended.
What was suspended this time was that ICBC specifically targeted taxes and fees paid during the purchase and sale of individual residential houses in Shanghai (generally including but not limited to deed tax, personal income tax, business tax, housing tax, stamp duty and other related taxes). A large-amount credit installment loan (fees and service fees), which is provided by the bank. The maximum limit is 10% of the property value, and the approved loan amount is up to 500,000 yuan. At the same time, the card cannot transfer or withdraw cash. You can only pay taxes by swiping the card to avoid cashing out or using the loan for other scenarios.
However, as Shanghai’s real estate market changes, this product faces adjustments. "This product will no longer exist." The above-mentioned personal loan manager of ICBC Shanghai told reporters that previously, the product's limit was based on the individual's credit limit (up to 500,000 yuan), and the installment rate was around 3.4% (will be adjusted according to the installment) ). According to him, after the product is suspended, the bank will launch another large-amount consumer installment product in the near future, but the amount and interest rate level have not yet been determined.
There are still banks that handle similar business
The maximum limit is 600,000
However, during the reporter's visit, we found that another local bank in Shanghai with similar products can still accept it business.
“The credit limit is 15% of the value of the house. The maximum credit limit can be 600,000 yuan. The loan can be for up to 8 years. The annual installment rate is more than 3 points. It can be processed at other banks such as ICBC and Agricultural Bank of China. You can also apply for a mortgage, and if you meet the conditions, you can usually get it. It takes about a month from submitting the materials to receiving the credit card.” However, the personal loan manager of the bank also reminded reporters, “You have to hurry up and it has been tightened now. It may stop at any time.”
Judging from the bills calculated by the loan manager, assuming the user applies for a card, the rate is very attractive compared to the installment loans on the market.
With other banks tightening the product, if home buyers apply for this product now, will the installment repayment be affected? The loan manager explained, "If the policy changes, it will affect new business transactions for subsequent users, and previously applied applications will not be affected." "This installment loan does not conflict with the issuance of housing loans, and does not require collateral. Often only a personal ID card, A house purchase contract (or a copy of the real estate certificate), income certificate, and tax bill (or debt status materials) can be applied for. The amount is not low, but the installment interest level is relatively low, which is similar to the provident fund loan interest rate, especially for the down payment. It’s very friendly to young people who just need a house,” a young homeowner who just bought a house in Shanghai’s inner ring last month told reporters.
Shanghai property market warms up in winter
Press the pause button
Behind the changes in the property market-related loan business is the regulation of the Shanghai property market.
On January 25, Shanghai’s real estate market regulation and control measures were implemented one after another. The Shanghai Housing Authority confirmed to the media that foreclosure houses were included in purchase restrictions. In addition, the Shanghai Housing Authority once again confirmed that on the evening of the 21st, the new property market regulation policy "Shanghai Ten Regulations" will be based on the online signing time for both first- and second-hand housing.
On the evening of January 21, with the consent of the Shanghai Municipal Government, the Shanghai Municipal Housing and Urban-Rural Development Management Committee and other departments jointly issued the "Opinions on Promoting the Stable and Healthy Development of the City's Real Estate Market" (hereinafter referred to as the "Opinions" 》), effective from January 22, 2021. Key points include: For couples who purchase commercial housing within three years of their divorce, the number of housing units owned shall be calculated based on the total number of housing units owned by the family before the divorce. Adjust the value-added tax exemption period. If an individual sells a house purchased less than 5 years ago, the full value-added tax will be levied. The "Opinions" emphasize strict management of commercial housing sales. Strictly manage the filing and management of sales plans for new commercial housing. Strictly implement various management systems such as "one price clearing" and "real-name system" for commercial housing sales. We will improve the notarization and lottery selection system for newly built commercial housing, and give priority to meeting the home purchase needs of “houseless households”.
Reporters from the Securities Times have also previously reported that the Shanghai property market will see a steady increase in volume and price in 2020, with transaction volume rising all the way. Especially in the "warm winter" of the Shanghai property market in November and December, the market was hot, and hot sectors, Hot real estate projects and houses in school districts are being snapped up. "The combined effect of cyclical forces, the need for hedging and improvement under the epidemic, the need for anti-inflation, the expansion of existing reforms, the reform of education for all citizens, and the relaxation of talent settlement have created the current heat in the property market." In Shanghai Yi Yang Hongxu, deputy director of the Ju Real Estate Research Institute, believes that the Shanghai property market is a reasonable release of demand after three years of downturn.
Regarding the regulation of the Shanghai property market this time, Yan Yuejin, Research Director of the Think Tank Center of the E-House Research Institute, believes that the policy was introduced in a timely manner and is very comprehensive, involving land, purchase restrictions, credit, taxes and other contents, which fully reflects the Shanghai's guidance is to stabilize housing prices and stabilize expectations. By adjusting the value-added tax exemption period, the transaction tax cost of second-hand houses will be increased, and the phenomenon of some landlords buying and selling houses quickly will be prevented, which will help to promote the stability of second-hand house transactions. Similar policies will have a greater impact on subsequent second-hand house transactions. big.