1, can stimulate the demand for housing

The down payment ratio of the second suite is reduced, which means that the threshold of the second suite loan is lowered, which is insufficient for the previous funds on hand, but there is a second suite of loan demand for the family, is bound to stimulate the demand for housing.

For example, Suzhou for the first set of mortgage has been settled two sets of mortgage, the down payment ratio from the original 50% reduced to 30%, then 1 million of the house originally need to prepare 500,000 down payment, after the reduction of only need to prepare 300,000 down payment will be able to buy a home loan.

2, can make the housing market rebound

Want the housing market to rebound in fact there are a variety of methods, such as reducing housing prices, reduce mortgage rates, reduce the proportion of the down payment, etc., by stimulating the demand for homeownership, can activate the housing market, promote the housing market virtuous cycle.

The virtuous cycle is reflected in the fact that, as soon as more people buy houses, houses become in short supply, and the prices may rise again, thus promoting economic growth, and then reach a certain height and then reduce the fall, so the cycle is a major feature of the market regulation.

3, so that the pressure of repayment

The second suite down payment ratio is reduced, just a lower threshold for entry into the loan, but the price of housing will not change, so the need to pay back the loan principal and interest will become more, the pressure of repayment each month will also become greater.

For example, the original down payment of 500,000 yuan loan 500,000 yuan, pay off in 30 years, the monthly monthly payment is only 2653 yuan, but the proportion of the down payment is reduced, the down payment of 300,000 yuan loan 700,000 yuan, in the case of other conditions remain unchanged, the monthly monthly payment will be required to 3,715 yuan, enough to increase the pressure of repayment of 1,062 yuan / month.

4, generate more interest

Calculate the mortgage interest on several key factors are the loan amount, loan period, loan interest rates and repayment methods, in the other three conditions remain unchanged, if the loan amount increases, then the interest generated by the loan is bound to be more, which means that the cost of purchasing a home has increased.

For example, if the loan period is 30 years, the loan interest rate is 4.9% per annum, and the repayment method is equal principal and interest, then the total interest rate of 500,000 down payment for 500,000 loan is about 455,300, while the total interest rate of 700,000 down payment for 300,000 loan is about 637,400, which is an increase of 182,100 interest.

If you're facing late payments on your online loans and are being called, we recommend that you go to Blue Ice Data to get a detailed big data report on your late payment record and categorize your online loans to distinguish between formal and creditworthy loans and informal and non-creditworthy loans. If you want to pay back but do not have enough money at the moment, it is advisable to negotiate with the online lending platform and prioritize the repayment of formal and creditworthy loans to minimize the impact on you. This move will not only improve your creditworthiness, but will also help you apply for other loans in the future.

Extended information:

What should I do if I don't have enough money for a down payment on a second home?

There are some things you can try if you don't have enough money for a down payment.

1, the withdrawal of provident fund purchase

work for many years, if there is enough provident fund balance, then the purchase of the second suite can be extracted, the amount of money withdrawn shall not exceed the purchase of the down payment.

2, choose housing prices slightly lower

Down payment is equal to the price of the house multiplied by the proportion of the down payment, the proportion of the down payment has been reduced to a minimum, if the down payment is still not enough, you have to settle for the next best thing, to choose the low price of the house.

3, seek the help of friends and family

If the loan to purchase a second suite in order to solve the problem of a family living, is the inevitable choice, then find family or friends to temporarily borrow a sum of money is also a way to at least alleviate the immediate cash flow problem.

Note that the down payment for the second suite must be paid from your own funds, not from the loan, the lending institution will clearly state that the funds are not to be used for the housing market, investment, or other purposes prohibited by laws and regulations.

In fact, if the own funds are not enough, then the second suite does not have to rush a moment to buy, or to maintain rationality, on-demand lending.