Is it compulsory to transfer mortgage to lpr?

Is it mandatory for ICBC to change lpr?

The state requires to choose between fixed interest rate and lpr floating interest rate. In principle, it will be completed on August 3 1. Generally, banks will send text messages or call to inform them. If they don't operate, they will default to lpr floating interest rate.

Extended data

1. On April 20, 2020, the People's Bank of China authorized the National Interbank Funding Center to announce that the quoted interest rate (LPR) of the loan market on April 20, 2020 was:1year LPR 3.85%, down 20 basis points from the previous period, which was the rate cut since the LPR reform in August 2009. The five-year LPR was 4.65%, down 10 basis point from the previous period.

2. On July 20, 2020, Bank of Communications took the lead in issuing an announcement, and on August 20, 2 1, the existing floating-rate mortgages that were not converted into loan market quotation (LPR) or fixed interest rate were uniformly adjusted to the LPR floating interest rate addition and subtraction method. Customers of Bank of Communications who have objections to batch conversion should also negotiate with the loan handling bank before February 3, 2020.

3. On August 12, 2020, five state-owned banks, namely Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Postal Savings Bank, announced at the same time that from August 25th, individual housing loans within the scope of batch conversion will be uniformly adjusted to the pricing method of LPR (loan market quotation) according to relevant rules. At the same time, it is clear in the announcement that after the batch conversion is completed, if there is any objection to the conversion result, it can be transferred back through relevant channels or negotiated with the loan handling bank before February 3, 2020.

Can ICBC change if it doesn't choose lpr?

I can't. August 3 1 is a deadline. All banks have made it clear in the announcement of share conversion that the LPR of mortgage conversion has only one chance, and once it is converted, it cannot be changed. If you don't regret it, unless you settle the mortgage in advance. Car owners who regret not switching to LPR pricing (that is, choosing a fixed interest rate) mainly because the mortgage LPR is not mandatory, so LPR cannot be converted. If the customer does not apply for LPR conversion, it will have no impact, and the loan contract still adopts the previously agreed interest rate.

Did the bank force me to calculate the mortgage according to the LPR interest rate, which violated my rights?

When buying a house loan, the bank forces to calculate the interest according to the LPR interest rate, depending on the time node of the mortgage application. LPR interest rate is the name of the central bank after the benchmark interest rate reform. In terms of mortgage, the calculation method of mortgage interest rate is changed from the original benchmark interest rate multiplied by the discount percentage to LPR plus 1 percentage point.

In fact, the central bank began to prepare the LPR interest rate mechanism in 20 19, and the LPR interest rate mechanism was prepared at the end of 20 19. The specific time for full implementation is March 2020 1.

Before March 2020 1, it was really unreasonable for banks to force the calculation of mortgage according to the LPR interest rate, but this practice is not important so far. Why do you say that?

At the end of February 2020, the central bank issued a notice to the effect that from March 1 day, 2020, the loan interest rate will be calculated according to LPR+ points for all those who have not signed the mortgage loan contract. If a loan contract has been signed, the borrower can contact the lender from March 1 to August 3 1. If it is not re-signed in time, it will be changed according to the fixed interest rate contract.

Therefore, if the questioner signs a loan contract after 1 in March 2020, it is normal for the bank to require interest at the LPR+ interest rate, which is in line with the mandatory provisions of the central bank. If the loan contract was signed before or shortly before March 1 in 2020, it is understandable, because even if the mortgage is calculated at the benchmark interest rate at that time, it will be after March 1.

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Whether the bank forces the calculation of mortgage loan at LPR interest rate violates your rights depends on the time of enforcement. For mortgages issued after 20 19 10, it is legal and compliant for banks to implement LPR interest rate, which meets the requirements of the People's Bank of China. If the loan is issued before 20 19 and 10, it will be enforced.

Considering the thinking of ordinary people in dealing with problems, the subject's worry is unnecessary. Why? First of all, substitute cooked food for raw food. The original mortgage interest rate calculation model has been used for many years, and the account manager has become accustomed to using the original interest rate calculation method. At first, the account manager actually resisted from the heart. First, I was not used to it, and second, I was worried about trouble at work when I first started using it, but the state stipulated that it should be implemented. Second, what kind of interest rate is adopted is determined by the bank according to the regulations of the People's Bank of China, taking into account the operating costs and competition of its own institutions, and requires employees to implement it within a certain period of time, which has no influence on the interest-bearing method when granting loans. In fact, the fixed interest rate and the LPR interest rate are the same when issuing loans. Interest rates are internal regulations of the bank, and the money collected is also considered as operating income and will not enter the pocket of the account manager. There is no need for the account manager to violate the rules thanklessly. Banks belong to collective units, not individuals, so there is no need to intentionally infringe on your rights and interests. Third, LPR is a tool for the Bank of China to guide the downward trend of market interest rates. In the long run, interest rates will gradually decline, and China's deposits may enter the era of negative interest rates in the future. Therefore, the implementation of LPR interest rate will gradually reduce the bank's income, and it will not take the initiative to request the implementation of LPR interest rate. However, because the bank does not belong to someone, the people who work in it have no motivation to resist or promote the implementation, so they can only implement the regulations step by step. Therefore, the subject can rest assured that no one has violated your rights and interests.

Let's start with my own two suites. I applied for mobile banking LPR last month. The procedure is very simple. Just follow the step-by-step instructions. Under normal circumstances, it is impossible for banks to forcibly switch to LPR. If the conversion really goes against the wishes of the customer, the customer has the right to resort to law.

In terms of mortgage, I received a short message from the bank to remind the stock of personal loan pricing benchmark conversion. Do you want to change it?

Mortgage conversion is not mandatory, and borrowers can choose the original fixed interest rate or convert it into LPR interest rate according to their own needs. The scope of this batch conversion includes floating rate personal housing loans (including personal commercial housing loans, excluding provident fund personal housing loans and provident fund discount loans) that have been issued before 2020 1 October1.

The interest rate pricing method agreed in the original contract is converted into the pricing benchmark based on the corresponding term LPR. From the time of conversion to the first re-pricing date thereafter (excluding), the execution interest rate level is equal to the latest execution interest rate level of the original contract.

This is stipulated by the state. Theoretically, it should be changed from March 1 to August 3 1, but there is no mandatory change. As for suitability, it depends on everyone's different situation. Generally speaking, a loan with a discount of 30% to 20% can be changed to a fixed interest rate. If the original interest rate is high, choose floating interest rate.