Now basically, you need to apply for a mortgage to buy a property. However, the loan amount of mortgage is relatively high and the term of mortgage is relatively long. Therefore, the bank's review and requirements for mortgage loans are relatively strict. Then, let's take a look at the impact of mortgage tightening on housing prices.

Banks' comprehensive tightening of mortgage loans may lead to a decline in house prices, especially in third-and fourth-tier cities. It turns out that the increase in housing prices in third-and fourth-tier cities is mainly based on the monetization of sheds. Now that the shed is old, there is less demand for buying a house. In addition, the outflow of local population is greater than the inflow, the industrial structure is single, and the housing price base is not firm. If banks tighten mortgage loans in an all-round way, the process of falling house prices in third-and fourth-tier cities will come faster.

The reason why bank loans will be tightened is mostly caused by insufficient bank quotas. Of course, there may also be reasons why the state controls the inflow of funds into the property market more strictly. In order to curb the real estate speculation fever, the state has strengthened the supervision of the real estate market. In this way, banks will think more when approving mortgages to avoid exceeding regulatory requirements.