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At the end of 20 19, the People's Bank of China announced that from March 1 2020, financial institutions should negotiate the pricing benchmark conversion terms with existing floating rate loan customers, 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 the market interest rate 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 released "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" of share conversion. According to media reports, Hubei Provincial Association had previously held a special "Supervision Meeting on Pricing Benchmark Conversion of Stock Floating Interest Rate Loans", demanding that the LPR interest rate conversion target be completed ahead of schedule before August 20.

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

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

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

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

20 19 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 LPR with a term of more than 5 years are still "on hold" and have not been adjusted for 3 consecutive months.

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

Although the mortgage interest rate has not been lowered recently, there is a certain interest rate cut in general. Since the introduction of LPR mechanism, the five-year LPR interest rate has dropped by 20 basis points, from 4.85% to 4.65%. Take the first home loan/kloc-0 million yuan for 30 years as an example, the monthly mortgage can be reduced by 120 yuan. "Whether to convert or not 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 is likely to decrease in the future, you can choose to change careers.

Source Beijing Daily Client | Reporter Cao Zheng

Editor: Cao Zheng

Process Editor wuyue