Recently, the central bank issued a statement announcing that starting from March 1 next year, it will promote the pricing benchmark of existing floating-rate loans and convert the loan benchmark interest rate to the loan market quoted rate LPR. In principle, this conversion should be completed by August 31, 2020. What does this conversion mean? What impact will it have on mortgage lenders?
Who does the New Deal mainly affect?
The reporter combed and found that the new policy of the central bank mainly affects buyers who buy a house before 2020, use commercial loans, and reference the loan's benchmark interest rate.
Yan Yuejin, Research Director of the Think Tank Center at E-House Research Institute: Except for the part that was priced according to the LPR reform since August this year, generally the mortgage loans that everyone has already handled at banks belong to the existing mortgage loans. The calculation of the loan interest rate formula is Such adjustments will be made next year.
So how to adjust it specifically?
In short, the central bank actually gave a multiple-choice question to buyers before 2020. Buyers will have to re-negotiate the pricing basis for mortgage rates with banks before March to the end of August next year:
Choose one and choose a fixed interest rate. According to regulations, the interest rate level of commercial personal housing loans after conversion should be equal to the most recently executed interest rate level of the original contract. In other words, after choosing a fixed interest rate, the current interest rate level has been maintained.
Option two, select "LPR + plus point" interest rate. LPR is the quoted interest rate on the loan market. LPR is published once a month and can go up or down. In other words, if you choose the “LPR + plus point” interest rate, your future mortgage interest rate can go up or down, and the monthly supply may also increase or decrease.
Yan Yuejin, Research Director of the Think Tank Center at E-House Research Institute: He may ask the buyer, so I do n’t pay back to the bank every month. I do n’t think I have to worry about it. It changes, but the default change period between you and the bank is at least one year.
Which one is more cost-effective?
Experts said that for buyers who have a short loan remaining period and a small loan balance, the two methods have little difference. However, for buyers who have a long loan amount and a long loan period, it is more advantageous to choose to go with the market.
Zong Liang, chief researcher of the Bank of China Research Institute: From the general trend of interest rate changes, whether globally or from the domestic environment, the probability of a downward interest rate is greater than the probability of an upward interest rate.
If it is said that the loan amount is large and the loan term is long, then at this time, we think that it may be most advantageous to choose according to the method of adding LPR points.