2023-09-11 07:30:50
Involving regarding 40 million borrowers, the average burden reduction is regarding 0.8 percentage points——
What benefits will the existing mortgage interest rate adjustment bring?
On September 7, financial institutions such as Agricultural Bank of China, Industrial and Commercial Bank of China, Bank of China, and China Construction Bank successively issued announcements, clarifying the scope, adjustment rules, service channels, and time of interest rate adjustments for existing first-home loans.
Previously, the People’s Bank of China and the State Administration of Financial Supervision jointly issued the “Notice on Relevant Matters Reducing Interest Rates on Existing First Home Loans” (hereinfollowing referred to as the “Notice”) to guide both parties to commercial personal housing loans to adjust and optimize their assets and liabilities in an orderly manner. Reduce existing first-home loan interest rates. What is the purpose of this existing mortgage interest rate adjustment? What benefits will it bring to borrowers? How can I apply for an interest rate adjustment? The reporter conducted the interview.
Reduce housing consumption burden and improve residents’ consumption ability
According to the “Notice” issued by the two departments, starting from September 25, borrowers with existing commercial personal housing loans for first homes can apply to the lending financial institution, and the financial institution will issue a new loan to replace the existing commercial first homes. Sexual personal home loan. At the same time, borrowers with existing commercial personal housing loans for their first homes can also apply to the lending financial institution to negotiate changes to the interest rate agreed in the contract.
The reporter learned that the existing commercial personal housing loans for first homes refer to commercial personal housing loans for first homes that have been issued by financial institutions before August 31, 2023 and have signed contracts but have not been issued, or the actual housing situation of the borrower Commercial personal housing loans for other existing housing stock that meet the standards for first-time housing in the city.
The “Notice” clarifies that the interest rate level of newly issued loans is determined by independent negotiations between financial institutions and borrowers, but the point increase in the loan market quotation rate (LPR) shall not be lower than the first commercial individual housing in the city where the original loan was issued. Housing loan interest rate policy floor. Newly issued loans can only be used to repay existing commercial personal housing loans for first homes and will still be included in the management of commercial personal housing loans.
Data show that as of the end of June, the balance of personal housing loans in my country was 38.6 trillion yuan. Industry insiders estimate that there are nearly 100 million first-home loan contracts nationwide, of which regarding 40 million borrowers are facing negotiation adjustments due to high interest rates, and the scale of loans involved may reach 25 trillion yuan. After the interest rate adjustment, the financial burden of these borrowers will be significantly reduced, with an average reduction of approximately 0.8 percentage points.
“This will help reduce the housing consumption burden, thereby increasing residents’ consumption and investment capabilities.” Dong Ximiao, chief researcher of the China Merchants Federation, told reporters that according to relevant calculations, the average decrease in the existing first-home loan interest rate adjustment will be approximately 80 basis points. Taking an existing mortgage loan with a term of 1 million yuan, 25 years, and an original interest rate of 5.1% as an example. Assuming that the mortgage interest rate is reduced to 4.3%, the borrower can save more than 5,000 yuan in repayment expenses per year.
Take convenient measures as much as possible to reduce borrower operating costs
“How to identify the first home?” “Can provident fund loans be adjusted?” “If you repay the loan early, can you still enjoy the interest rate reduction?”… After the release of the existing mortgage interest rate adjustment policy, it has received widespread attention from all walks of life, and some borrowers are eager to Find out if your mortgage can take advantage of interest rate reductions.
The reporter learned that in terms of the scope of application of the policy, the “first house” includes two types of situations: one is a mortgage that meets the first house standard in the city when the original loan is issued; second, the borrower’s current actual housing situation already meets the city’s first house standard. Commercial personal housing loans for other housing stock that meet housing standards.
Recently, many cities such as Beijing and Shanghai have announced the implementation of the policy of “recognizing houses but not repaying loans”. Some borrowers’ homes that were originally considered “second homes” may now be recognized as “first homes.” How to understand “the current actual housing situation of the borrower already meets the standards for the first home in the city”?
Dong Ximiao explained that if the family did not have any other housing when they took out a loan to purchase this house, the policy of “acknowledge the house and subscribe for the loan” at that time would cause the house to be processed at the interest rate of the second house loan. Since then, the family has not purchased a new house, but the area where they live now has implemented the policy of “recognizing a house but not a loan”, and this time it can be implemented as the first home.
In addition, if the home purchased with a loan was not the family’s only local home, but later sold other homes through transactions, etc., and this home became the family’s only home and the local government has implemented the “recognize the house but not the loan” policy, this time you can purchase the home as the first home. Set execution.
In terms of loan types, China Construction Bank stated that housing provident fund loans, housing provident fund loans in portfolio loans, and loans for purchasing shops and other commercial buildings are not within the scope of this adjustment; ICBC also stated that housing provident fund loans and provident fund loans in portfolio loans are not within the scope of this adjustment. The loan part is not within the scope of adjustment. For commercial personal housing loans in portfolio loans, the interest rate level can be adjusted individually if the conditions are met.
For borrowers who have applied for early repayment, the bank will follow the principle of “due adjustment” to maximize the benefits to the borrower. “For customers who have repaid their loans in advance, as long as the loan has not been paid off, the interest rate can be reduced for all those who meet the conditions.” Sui Yunfei, a staff member of the Housing Finance and Personal Credit Department of China Construction Bank, said that for customers who have applied for early repayment but have If the deduction has not been completed, customers can cancel the early repayment application according to their own needs. Those who meet the conditions can also be included in the scope of this adjustment.
The “Notice” requires that all financial institutions should promptly formulate specific operating rules, organize and implement them, improve service levels, respond to borrower applications in a timely manner, and take convenient measures as much as possible to reduce borrower operating costs.
Dong Ximiao said that the reason why the application date is set as September 25 is to give banks enough time to make preparations such as revising the contract text, transforming and adjusting the system, identifying customers who meet the standards, and announcing the processing procedures to the borrowers. and application materials that need to be prepared.
Currently, all commercial banks are actively preparing to ensure that they will accept customer adjustment applications from September 25. “China Construction Bank is stepping up preparations internally to strive to maximize the convenience for borrowers. When applying for a loan, it is a first-time home loan. No customer application is required. Our bank will directly make batch adjustments on September 25 so that borrowers can enjoy the benefits of the policy as soon as possible. “Sui Yunfei said.
“No fees are charged for the interest rate adjustment process for existing first-home loans. In most cases, borrowers do not need to initiate an application. In special circumstances, borrowers should directly contact the bank for communication and negotiation.” Dong Ximiao reminded that no matter what the adjustment method is, borrowers do not need to By operating it through a mortgage agency or other external agency, there is no need to spend extra money to find a relationship.
Interest rate adjustments are beneficial to borrowers and can also alleviate the phenomenon of early loan repayment to a certain extent.
In recent years, the supply and demand relationship in my country’s real estate market has undergone major changes, and both borrowers and banks have demands for orderly adjustment and optimization of assets and liabilities.
On July 24, the Political Bureau of the CPC Central Committee held a meeting and pointed out that it is necessary to effectively prevent and resolve risks in key areas, adapt to the new situation of major changes in the supply and demand relationship in my country’s real estate market, timely adjust and optimize real estate policies, implement city-specific policies and make good use of the policy toolbox, and more To meet residents’ rigid and improved housing needs and promote the stable and healthy development of the real estate market.
The “Notice” issued by the two departments this time is to guide both parties of commercial personal housing loans to adjust and optimize assets and liabilities in an orderly manner, standardize the order of the housing credit market, and better meet rigid and improved housing needs.
Relevant officials from the People’s Bank of China and the State Administration of Financial Supervision said that the decline in existing housing loan interest rates can save interest payments for borrowers and help expand consumption and investment. For banks, it can effectively reduce the phenomenon of early loan repayment and reduce the impact on bank interest income. At the same time, it can also reduce the space for illegal use of operating loans and consumer loans to replace existing housing loans and reduce hidden risks.
The People’s Bank of China and the State Administration of Financial Supervision stated that they will pay close attention to market dynamics, guide banks and customers to conduct independent negotiations in accordance with the principles of marketization and rule of law, reduce existing housing loan interest rates in an orderly manner, and maintain the order of market competition. (People’s Daily)
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