Beginning in January 2021, the amount of bank mortgage loans has been restricted, and banks have begun to tighten their policies on home purchase loans. For home buyers, it has become more difficult to apply for home purchase loans. Many banks There is already a shortage of loan quotas, so will mortgage purchases not be allowed in 2021? Can I get my down payment refunded if I can’t get a mortgage for a house? Let’s take a look below.

Are mortgages not allowed to buy houses in 2021?

The mortgage loan ratio in bank lending has dropped directly from 60% at the peak to 20-30% now, and for the investment benefits of mortgages Businesses with high and low bad debts will be tightened by the state.

1. Insist on housing for living and not for speculation, and provide loans to people in urgent need to buy houses. 2. Gradually reduce the flow of funds into the housing market and gradually achieve a balance between supply and demand. Cooling down the property market from the perspective of national policies (the key point is that money can no longer flow into the property market)

On the afternoon of December 31, 2020, the central bank issued "About the Establishment of Concentration Management of Real Estate Loans of Banking Financial Institutions" on the official website System notification”. The notice sets "two red bars" for banks regarding the scale of housing loans:

The first red bar is the "proportion of real estate loans", which is the balance of real estate loans of banking financial institutions in the institution's RMB The proportion of each loan balance.

The second red bar is the "proportion of personal housing loans", which is the ratio of the balance of personal housing loans to the balance of various RMB loans of financial institutions.

It is worth mentioning that after these two red lines, for ordinary home buyers:

It means that in the past, "small banks" will provide more "flexible" personal housing loans. Policies, the space to expand this part of the business will be restricted, and the management of personal housing loan interest rates, qualifications, etc. will be more stringent.

Interestingly, for our personal housing loans, it is generally best to have a monthly loan repayment amount no more than 30% of the family income. This is regarded as the "safety line" for a family's property, which can ensure that the individual's monthly payment is Normal household living expenses after repayment;

The seven major state-owned banks have the highest "proportion of personal housing loans", reaching 32.5% of total loans.

It shows that the central bank also regards "30% of the total loans" of state-owned banks as the safety line of a country's "housing finance".

Can I get my down payment refunded if I cannot get a mortgage for a house?

If it is due to bank reasons, such as a tight quota and the inability to lend, then the buyer can negotiate with the seller to terminate the house purchase contract and does not have to bear liability for breach of contract. , the seller should return the down payment for the house unconditionally. If it is due to the home buyer's own reasons, such as a stain on his credit record or insufficient repayment ability that affects the loan approval, he should first try to solve it, such as finding a guarantee company to guarantee or extending the repayment period. If the problem still cannot be solved, the only option is to cancel it. The house purchase contract is in place.

1. Understand the conditions for refunding the down payment

When making the down payment, you need to sign a home purchase contract. Then the home buyer should pay attention to the provisions on refunding the down payment in the home purchase contract, for example, When a home buyer is rejected for a mortgage and cannot continue to execute the home purchase contract, the seller should return the down payment; or when the seller delays delivery, the home buyer should have the right to demand a refund of the down payment. All in all, if you don’t want to lose your down payment after being rejected for a mortgage, you must negotiate with the seller about the down payment refund standards before paying the down payment.

2. Don’t trust verbal promises

Some home buyers pay down payments because the salesperson made some promises when selling the house. Salespersons are shrewd and use various tricks. Words can be said casually, especially all kinds of verbal promises to coax you to buy a house. For example, when buying a house, in order to get buyers to pay the down payment as soon as possible, developers often make wonderful verbal promises, such as giving away decorations or furniture and appliances when buying a house now, or being exempt from paying property fees for one year. If you believe these verbal promises but do not write the verbal promises into the contract, then the developer may not honor them.

The above is the relevant content compiled by the editor on "Will mortgage purchases be allowed to buy houses in 2021?"