Shanghai housing loan interest rates have dropped

According to monitoring data released by the Bank Information Port Big Data Research Institute, starting from the beginning of 2019, many banks in Shanghai have lowered first-home loan interest rates. The average level fell for the first time in 2019. In other words, the news of Shanghai housing loan interest rate falling is true, so how much will Shanghai housing loan interest rate drop?

According to the news, we learned that the interest rate discount for first-home loans in Shanghai from ICBC and Agricultural Bank of China has dropped from 95% to 10%, while the interest rate for second-home loans remains unchanged at a 10% increase from the benchmark interest rate. In other words, when buying a first home in Shanghai, the loan interest rate is lower than before. So why did Shanghai lower housing loan interest rates?

The main reason why ICBC and Agricultural Bank of China in Shanghai lowered their first-home loan interest rates is that Shanghai’s domestic and foreign currency personal housing loans increased by 27.503 billion yuan in the first half of this year, a decrease of 91.420 billion yuan year-on-year. Affected by real estate regulation, the demand for new personal housing loans in Shanghai has dropped sharply, which makes some banks hope to make their mortgage business look better in the second half of the year by encouraging the entry of first-time buyers into the market.