Personal mortgage interest rate conversion SMS

At the end of 20 19, the People's Bank of China announced that financial institutions should negotiate with customers of existing floating-rate loans on the conversion terms of pricing benchmark from March 1 2020, and in principle, it should be completed before August 3 1 2020. At that time, the relevant person in charge of the People's Bank of China explained that the stock floating rate loans were still priced on the basis of the benchmark loan interest rate, which could not reflect the changes in market interest rates in time, which was not conducive to protecting the rights and interests of both borrowers and borrowers.

Not long ago, the China People's Bank published "China Monetary Policy Implementation Report (Second Quarter of 2020)", which revealed that by the end of June, the conversion progress of stock loan pricing benchmark had reached 55%. Among them, the conversion progress of existing enterprise loans is 76%.

At the same time, some local banks have recently staged a "sprint". According to media reports, Hubei Provincial Association held the "Supervision Meeting on Pricing Benchmark Conversion of Stock Floating Interest Rate Loans" before, demanding that the LPR interest rate conversion target be completed ahead of schedule before August 20th.

How to convert the pricing benchmark of existing individual housing loans? Is LPR conversion worth it?

For example, the real interest rate of a commercial personal housing loan in March 2020 was 5.6%, and the remaining term was 25 years.

If the lender chooses to convert to a fixed interest rate, the interest rate clause of the loan contract will be changed to a fixed interest rate of 5.6% and will be implemented until the loan is settled;

If the lender chooses to convert to the floating interest rate based on LPR, then: (1) The actual execution interest rate of this loan will remain unchanged at 5.6% from now until February 2020; (2) The spread is the difference between the current actual interest rate and the LPR(4.8%) published on February 20, 20 19, that is, 80 basis points (5.6%-4.8%=0.8%), and the spread will remain unchanged in the future; (3) If both the borrower and the lender decide that the repricing period is still 1 year, the repricing date is 65438+ 10/0, 202 1 65438+10 -65438+2, and the actual interest rate of the loan.

20 19 Starting from August 20th, at 9: 30 on the 20th of each month (postponed in case of holidays), the People's Bank of China authorized the National Interbank Funding Center to announce the LPR of the current month. On July 20th this year, the loan market quoted interest rate (LPR) was 65,438+3.85% for 0 years and 4.65% for more than 5 years. The new phase 1 year LPR and 5-year LPR are still "stagnant" and have not been adjusted for three consecutive months.

Xu Xiaole, chief market analyst of RealData, believes that the economic recovery in the first half of the year exceeded expectations, which indicates that the countermeasures taken after the epidemic have achieved initial results. At the same time, under the financial easing, the prices of capital products such as land and house prices in core cities have risen. Therefore, the recent monetary policy has been restrained, and the loan interest rate has remained flat, which is in line with the principle of timely and moderate.

Although the mortgage interest rate has not been lowered recently, there is still room for interest rate reduction in general. Since the introduction of LPR mechanism, the five-year interest rate of LPR has dropped by 20 basis points, from 4.85% to 4.65%. Take the first home loan for 30 years/kloc-0 million yuan as an example, and the monthly mortgage can be reduced by 120 yuan. "Whether or not to convert is based on personal judgment on the future interest rate trend." Yan Yuejin, research director of the think tank center of Yiju Research Institute, said that if you think that the LPR interest rate may fall in the future, you can choose to switch.

Source Beijing Daily Client | Reporter Cao Zheng

Editor: Cao Zheng

Process Editor wuyue