Yesterday afternoon, official website, the central bank, made an announcement on the interest rate of newly issued commercial personal housing loans. According to the announcement, since October 8, 2019, the new commercial personal housing loan interest rate has been formed by adding the loan market quotation rate (LPR) of the corresponding period in the latest month as the pricing benchmark. According to the LPR on August 20th, the interest rate of the first individual housing loan newly issued nationwide shall not be lower than 4.85%, and the interest rate of the second home loan shall not be lower than 5.45%.
The new deal mortgage interest rate repricing cycle can be agreed.
According to the announcement of the central bank, when borrowers apply for commercial personal housing loans, they can negotiate with banking financial institutions to agree on the interest rate repricing period. The minimum repricing period is one year. On the interest rate repricing date, the pricing benchmark is adjusted to the loan market quotation rate for the corresponding period in the latest month. The interest rate repricing period and adjustment method should be clearly defined in the loan contract.
In terms of loan interest rate, the interest rate of the first set of commercial personal housing loans shall not be lower than the quoted interest rate of the corresponding term loan market, and the interest rate of the second set of commercial personal housing loans shall not be lower than the quoted interest rate of the corresponding term loan market plus 60 basis points.
The reporter noted that on August 20th, the National Inter-bank Funding Center announced the first LPR after the reform, with a one-year level of 4.25%, 10 basis points lower than the benchmark interest rate of one-year loans of 4.35%. The five-year level is 4.85%, which is 5 basis points lower than the benchmark interest rate of 4.90% for five-year loans.
The central bank said that October 8 is the conversion date of pricing benchmark. This means that before October 8, commercial personal housing loans that have been issued and commercial personal housing loans that have been signed but not issued will still be implemented according to the original contract. At the same time, the loan interest rate for commercial housing purchase shall not be lower than the quoted loan market interest rate for the corresponding period plus 60 basis points. The interest rate policy of provident fund personal housing loan will not be adjusted for the time being.
The analysis has little influence on most buyers.
Zhou Jingtong, chief researcher of Bank of China, said that the central bank’s move was a "break between the old and the new". The interest rate of new commercial personal housing loans was formed by adding the quotation rate of the loan market in the latest month as the pricing benchmark. The commercial personal housing loans that have been issued and the commercial personal housing loans that have been signed but not issued are still implemented according to the original contract.
Many insiders have analyzed that the central bank’s adjustment of mortgage interest rate according to the new benchmark of LPR is to resolutely implement the positioning that "houses are used for living, not for speculation" and keep the interest rate of personal housing loans basically stable. For the vast majority of buyers, this adjustment has little impact.
In the later period, if the LPR interest rate is lowered, according to this regulation of the central bank, the minimum interest rate of the first and second home loans will naturally be lowered, but it should be noted that this only refers to the minimum interest rate, and the actual interest rate will also be affected by regulatory policies and bank credit resources. It is expected that the implementation interest rate will hardly drop significantly and universally in the short term.
Beijing Evening News reporter Zhang Pinqiu
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