Today, at a high rate of economic growth, more and more people are choosing to buy property through loans. In the case of housing loans, the down payment is an important expense for the purchase of the house. So, how much does a loan pay first? This paper will be analysed from multiple perspectives。

How much is the loan usually down payment

First, at the policy level, the down payment rate for loans is at least 20 per cent. This policy is proposed to avoid over-indebtedness. The purchaser is required to cover at least 20 per cent of the down payment, while the rest can be done through a loan. In this context, the purchaser is also required to determine the rate of down payment according to his financial situation. An increase in the down payment ratio could be considered if the monthly supply was not under pressure. In such cases, it would be effective to reduce the pressure on future repayments. On the other hand, a reduction in the down payment ratio could be considered if the monthly supply was under pressure。

Second, the down payment ratio is not fixed by market conditions. There are different requirements for down payment rates in different cities, different buildings, different segments, etc. The down payment rate would be relatively high in some front-line and hot city buildings. In some cities on the 2nd and 3rd line, the buildings are relatively low. Moreover, the down payment ratio may change over time on the premises. In general, the down payment rate increases when the house price rises; the down payment rate decreases accordingly. At this point, attention will need to be paid to the network of officials on the building, announcements at the sales centre, newspapers, etc., and to the down payment rate of the building。

Thirdly, in terms of their capacity, the down payment ratio needs to be determined on the basis of their economic strength. The economic strength of a person depends largely on income and assets. If income is stable and there is some savings, an appropriate increase in the down payment ratio could be considered. In such cases, it would be effective to reduce the pressure on future repayments. On the contrary, if the current income situation is not stable, it is suggested that a conservative down payment ratio be chosen to avoid creating economic difficulties in the event that the monthly supply becomes unaffordable。

Finally, attention needs to be paid to the source of the funds to be paid when the loan buys a down payment. Generally, home buyers need to prepare for the down payment ratio well in advance, and the source of funding needs to provide documentation such as a formal accounting certificate. Otherwise, they may be considered suspected of offences such as money-laundering。