2023-09-03 00:24:52
Yangcheng Evening News all-media reporter Dai Manman
On August 31, the official website of the People’s Bank of China issued the “Notice of the State Administration of Financial Supervision and Administration of the People’s Bank of China on Matters Concerning Reducing the Interest Rate of Existing Home Loans” (hereinfollowing referred to as the “Notice”). From September 25th, borrowers of existing first-home loans can apply to the lending bank for new loans to replace existing loans or negotiate with commercial banks to change the contract interest rate.
After the “Notice” was issued, a number of banks issued announcements overnight, stating that they would provide efficient and convenient online and offline services in accordance with the principles of marketization and rule of law. Who are the beneficiaries of the existing first-home loan replacement, and how much can the interest be reduced at most? Yangcheng Evening News all-media reporters sorted out the current policies that have been introduced.
Bank: We are stepping up the formulation of detailed rules
According to the “Notice”, borrowers can apply from the 25th of this month. What is the current progress of the bank?
In fact, following the “Notice” was issued, many large and medium-sized banks, including Agricultural Bank of China, China Construction Bank, Postal Savings Bank of China, Bank of Communications, and China Merchants Bank, quickly issued relevant announcements, stating that they would provide Efficient and convenient online and offline services, in accordance with the provisions of the “Notice”, do a good job in reducing the interest rate of commercial personal housing loans for the first set of housing.
On the evening of the same day, the Agricultural Bank of China issued the “Announcement on Adjusting the Interest Rate of the First Home Loan in Stock”, stating that under the guidance of relevant departments, the bank is actively and orderly carrying out preparations for the adjustment of the interest rate of the first home loan in stock. In addition to large state-owned banks, joint-stock banks also publicly issued announcements to express their positions. China Merchants Bank’s official website announcement stated that under the guidance of relevant departments, the bank is stepping up the formulation of specific operating rules and carrying out interest rate adjustment work as soon as possible. Follow-up progress information will be announced on the Bank’s official website, mobile banking, outlets and other channels in a timely manner.
How much interest can be reduced varies
Existing first-home loan replacement, how to replace it? The “Notice” has clearly stipulated that the interest rate level of the new loan is determined by the financial institution and the borrower through independent negotiation, but the rate of addition to the loan market quotation rate (LPR) shall not be lower than the city where the original loan was issued. The lower limit of the interest rate policy for commercial personal housing loans for the first set of housing. The newly issued loans can only be used to repay commercial personal housing loans for the first house in stock, and are still included in the management of commercial personal housing loans.
On September 1, Beijing, Shanghai, Shenzhen, and Guangdong (excluding Shenzhen) successively announced the historical adjustment of the lower limit of first-home loan interest rates. On the followingnoon of September 1, the Guangdong Market Interest Rate Pricing Self-Discipline Mechanism announced the historical adjustment of the lower limit of first-home loan interest rates in cities in Guangdong Province (excluding Shenzhen) since October 2019. Among them, from October 8, 2019 to the present, the lower limit of the first-home interest rate implemented in Guangzhou is LPR, which also means that the adjusted interest rate of Guangzhou’s stock mortgages cannot be lower than LPR. If the borrower applies on September 25, and the LPR interest rate of more than 5 years in that month is still maintained at 4.2%, then the minimum interest rate of the stock first-home loan that the borrower can apply for following adjustment is 4.2%.
How much money can be saved following the interest rate adjustment of the stock first-home loan? According to industry insiders, this depends on the interest rates signed by different borrowers in different periods. Generally speaking, there is a principle that the higher the interest rate signed at that time, the more interest can be saved. Taking Zhang Dawei, the chief analyst of Centaline Real Estate, as an example, the minimum interest rate limit for most existing housing loans is 4.65%, and home buyers basically buy houses at an interest rate of regarding 6%. Afterwards, the monthly payment can be reduced from 5995 yuan to regarding 5156 yuan, saving regarding 840 yuan per month.
Editor: Zheng Jianlong
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