Take ICBC as an example to explain how to process mortgage interest rate conversion

It is not difficult to see that if LPR will continue to decline in the future, it will be more cost-effective to convert the mortgage interest rate to reference LPR pricing. Currently, feedback from many commercial banks shows that there are more borrowers who expect LPR to decline, and more people choose the LPR option than choose fixed interest rates.

It should be noted that according to the deployment of the regulatory authorities, the conversion work must be completed in principle before August 31. If the borrower has conversion needs, it is recommended to negotiate with the corresponding financial institution before this time node.

In addition, if the loan has the same borrower, all the same borrowers need to agree to the change before the pricing basis conversion can be implemented.

How to do it? Take ICBC as an example. The bank currently provides multiple acceptance channels such as mobile banking, smart teller machines, and SMS banking. "During the epidemic, it is recommended that borrowers handle transactions through mobile banking. If they really need to handle it offline, it is recommended to wait until after the epidemic is over." said the relevant person in charge of the bank.

From the online processing channel, borrowers can log in to the ICBC mobile banking APP, click on the path of "Favorites, All, Deposits and Loans, Interest Rate Benchmark Conversion, One-Click Conversion" and follow the prompts. .

“If you are the co-borrower in the loan contract and have reserved a mobile phone number with ICBC, after the primary borrower initiates the pricing benchmark conversion, you will receive the pricing sent by ICBC 95588 At this time, you can directly reply to the text message to confirm the pricing benchmark change." The person in charge said that this bank SMS function is expected to be launched in mid-April.

As for the effective time of the conversion, it is usually "effective in real time". For example, when converting the pricing basis in mobile banking, if the upper right corner of a certain contract in the contract list displays "priced according to LPR", it means that the change has been successful.

However, if your loan has the same borrower, all the same borrowers need to complete the change confirmation before 24:00 on the day when the main borrower initiates the change, so that the pricing basis change can take effect. .

Correspondingly, the bank will send a text message reminder to the mobile phone number reserved by the borrower after the pricing benchmark is changed successfully or failed, and the borrower is advised to pay attention to the relevant information in a timely manner.

The last thing to remind is that according to the central bank’s policy requirements, after the pricing benchmark is converted to LPR, it cannot be converted back to the benchmark interest rate. That is to say, the pricing benchmark can only be converted once, and the borrower should Make rational choices after careful consideration.