The adjustment of existing mortgage interest rates has officially landed! From September 9, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank officially adjusted the interest rate of the first home loan in stock. According to the previous announcements issued by a number of banks, for existing housing loans that implement the first home loan interest rate standard at the time of issuance of the original loan, customers do not need to submit an application, and major banks will make centralized adjustments.
Which home buyers can get their mortgage interest rates reduced? What standards can be lowered to? What is the impact on the real estate market?
"LPR+High Basis Point" adjusted to "LPR+Low Base Point"
After working in Yiwu, Zhejiang Province for 5 years, Chen Nanxi bought her first home. Recently, the interest rate of existing mortgages was adjusted in bulk, and she became one of the beneficiaries.
"My loan period is from November 2021 and the loan term is 11 years. Before adjusting the interest rate of the existing mortgage, the mortgage interest rate is calculated according to the LPR (loan market quotation rate) plus 30 basis points, which is 115.5%, so that the monthly mortgage repayment is more than 45,1 yuan. After the adjustment of the interest rate of the existing mortgage, my mortgage interest rate was adjusted to the LPR standard, which is now implemented at 4.3%, and the monthly repayment amount is less than 1000,<> yuan. Chen Nanxi said.
Lowering the interest rate of the first home loan in stock is a blockbuster new policy that has attracted much attention in the property market recently.
On September 9, the four major state-owned commercial banks of industry, agriculture, China and construction issued announcements respectively to clarify matters related to the adjustment of interest rates for the first set of housing loans in stock. On September 7, banks began to officially reduce the interest rate of commercial personal housing loans for the first home in stock. According to the announcement issued by the four major state-owned commercial banks, the scope of this adjustment is the first set of commercial personal housing loans that have been issued and signed contracts but have not been issued before August 9 this year. According to the loan disbursement time, the adjustment scope of the four major banks is basically divided into housing loans issued before October 25, October 8 to mid-May 31, and mid-May 2019 to August 10, 2019.
Yan Yuejin, research director of the E-House Research Institute, analyzed that according to the time division, buyers who bought houses before October 2019 mostly started in the hot stage of the property market, when the mortgage policy was more stringent and the mortgage interest rate was generally higher. For those who buy a house in the other two time periods, there is also room for adjustment in mortgage interest rates.
"In layman's terms, the reduction of the mortgage interest rate is to adjust the calculation formula of the mortgage interest rate, and the monthly payment of each month is recalculated according to the adjusted new formula." Yan Yuejin said. In October 2019, the "anchor change" of housing loan interest rates was officially implemented, and the interest rate of newly issued commercial personal housing loans was formed with the LPR of the corresponding maturity of the latest month as the pricing benchmark. "At present, the vast majority of home buyers' mortgage interest rates are based on the 'LPR + basis point' method. With the LPR unchanged, the higher the basis point, the higher the mortgage interest rate for home buyers, and vice versa. This adjustment is actually to adjust 'LPR+high base point' to 'LPR+low base point'. He said.
For example, according to the announcement of the Industrial and Commercial Bank of China, floating rate loans issued before October 2019, 10 (excluding that day) and converted to the loan market quotation rate pricing as required can be adjusted to the minimum LPR of the corresponding term without adding points; Variable-rate loans issued from October 8, 2019 (inclusive) to May 10, 8 (inclusive) and subject to LPR pricing can be adjusted to the lowest limit of the national first home loan interest rate policy, that is, the corresponding term LPR does not add points; Floating rate loans issued after May 2022, 5 (excluding that day) that implement LPR pricing can be adjusted to the minimum limit of the national first home loan interest rate policy, that is, the corresponding term LPR-14 basis points.
"This home loan interest rate adjustment, my interest rate from the previous LPR plus 64 basis points to LPR, I can pay more than 200 yuan less every month." Su Chenyang, who lives in Tangshan, Hebei Province, said.
The "second set to the first set" group has clearly benefited
According to the announcement issued by a number of banks, the adjustment is aimed at the interest rate of the existing first home loan. That is to say, if the first home loan issued or signed by the financial institution before August 8, the borrower can directly apply for the adjustment of the mortgage interest rate.
Recently, after the official landing of the "house recognition but not loan" policy, many buyers of "second set to first home" raised the following question: Can my housing loan interest rate be adjusted accordingly?
"After the implementation of the 'recognize a house but not a loan' policy, borrowers who were recognized as the first home loan for the original second home loan can also apply for a reduction in the mortgage interest rate." Dong Ximiao, chief researcher of CMF Finance, told this reporter. For borrowers who hold more than one property, if one of the dwellings has a loan, it is originally a second home loan. Now after the sale of other properties, one house under the name becomes the sole home of the family, and the second home loan becomes the first home loan, and you can apply for adjustment.
In addition, taking the announcement of the Agricultural Bank of China as an example, the family did not have other complete houses in the local area at the time of house purchase, but because the local government adopted the policy of "recognizing the house and recognizing the loan", the housing was processed according to the standard of the second home loan interest rate, and now the local government implements the policy of "recognizing the house but not recognizing the loan", which is also within the scope of the mortgage interest rate adjustment.
Beijing's "new citizen" Li Qi is one of these buyers. In 2017, he bought a house in his hometown of Guiyang. Two years later, he bought a second-hand house in Beijing, where he works, and applied for a loan of 200 million yuan. "At that time, Beijing implemented the policy of 'recognizing a house and recognising a loan', and although I did not have a house in Beijing before, I had a loan record in other places, so the interest rate of the loan applied for according to the interest rate of the second home loan was 5.88%." Li Qi said that on September 9 this year, the policy of "recognizing houses but not recognizing loans" was implemented in Beijing, so his house was changed from a second house to a first house, and the first home loan interest rate was implemented, that is, the LPR did not increase points. Converted, you can repay more than 1,2000 yuan less mortgage per month than before.
Lu Sha, who lives in Beijing, is a "sell one, buy one" replacement buyer. In September 2020, she "sold one to buy one" to replace a new house, and applied for a loan at the interest rate of 9.5% for the second home loan when she bought it. "After the recent implementation of the 'Recognize a House but Not Recognize a Loan' policy, my house can enjoy the corresponding mortgage interest rate adjustment. On September 35, I saw through the mobile banking app that the mortgage interest rate had been lowered to 9.25%, saving nearly 4 yuan a month. She said.
"From the perspective of specific operations, there are two main ways to adjust the interest rate of the existing first home loan: the first is the interest rate change, and the borrower negotiates with the bank to change the interest rate of the existing housing loan; The second is to exchange the old with the new, and the bank will issue a new loan to replace the existing first home loan according to the borrower's application. Judging from the announcement, the four large banks are mainly based on interest rate changes. Dong Ximiao said, "Special circumstances such as 'two sets to the first set' require borrowers to initiate applications, but most banks provide online application channels, which can provide convenience for borrowers to the greatest extent." ”
Reduce the interest burden of residents and enhance their consumption power
Industry insiders analyzed that the adjustment of the interest rate of the first home loan of many banks is a key measure to adapt to changes in the domestic real estate supply and demand relationship.
In the first half of this year, affected by multiple factors such as the decline in mortgage interest rates, the asset allocation planning of residents themselves, and the unsatisfactory returns of wealth management products, there was a "wave of prepayment of loans" in many cities across the country, which objectively had a certain impact on the income of commercial banks. At the press conference of the State Council's new office on July 7, Zou Lan, director of the Department of Monetary Policy of People's Bank of China, mentioned that the interest rate of existing housing loans issued in previous years was still at a relatively high level, which was greatly related to the sharp increase in early repayment. "In accordance with the principles of marketization and rule of law, we support and encourage commercial banks and borrowers to independently negotiate to change the contractual agreements, or issue new loans to replace the original existing loans." Zou Lan said.
On August 8, People's Bank of China and the State Financial Regulatory Administration jointly issued the Notice on Adjusting and Optimizing Housing Credit Policies and the Notice on Reducing the Interest Rate of the First Housing Loan in Stock Stock.
The relevant person in charge of People's Bank of China said: "In recent years, the relationship between supply and demand in China's real estate market has undergone major changes, and borrowers and banks have demands for orderly adjustment and optimization of assets and liabilities. "Reducing the interest rate of existing housing loans can save interest expenses for borrowers, which is conducive to expanding consumption and investment; For banks, it can effectively reduce the phenomenon of prepayment and reduce the impact on bank interest income. At the same time, it can also reduce the space for illegal use of business loans and consumer loans to replace existing housing loans, and reduce hidden risks.
"We expect that more than ninety percent of eligible borrowers will be able to fully enjoy the policy dividends in the first place, and the interest rates of other borrowers' existing mortgages will also be adjusted by the end of October." Zou Lan said, "The reduction of the interest rate of existing housing loans can reduce the interest burden of residents and significantly enhance their consumption power." This policy adjustment is beneficial to the medium and long term, which can continue to reduce the expenditure of households with higher interest rate loans to buy houses in recent years, support the improvement of residents' consumption capacity, and effectively promote consumption growth. ”
In Dong Ximiao's view, lowering the mortgage interest rate will help stabilize and expand housing consumption demand, thereby promoting the healthy and stable development of the real estate market. Next, we can also re-optimize the purchase restriction, loan restriction and sales restriction policies according to the city's policies, such as canceling too strict purchase restriction measures, adjusting the interest rate of existing second-home loans, etc., to further stimulate housing consumption demand from the demand side. For banks, they can further achieve refined management by reducing deposit interest rates, increasing credit investment, and developing wealth management business, and hedge the impact of the adjustment of existing housing loan interest rates on profits and interest margins.
Liao Ruiling (Source: People's Daily Overseas Edition)
Liao Ruiling