Image source: Daily Economic News
According to the notice issued by the People's Bank of China and the State Financial Regulatory Administration, commercial banks began to reduce the interest rate of commercial personal housing loans for the first set of housing from today. For eligible customers of the first set of stock housing, there is no need to apply, the bank will adjust it centrally, and the new interest rate will take effect on the same day.
The reduction in interest rates on existing mortgages has benefited thousands of people, and the public has been particularly concerned about this recently. On social media platforms, some netizens ridiculed "saved a year's salary".
The first set does not need to apply for bank unified adjustment
In order to facilitate customers and simplify the application process, many banks have recently launched the "Stock Mortgage Interest Rate Adjustment" service, customers can log in to check whether the adjustment conditions are met and the adjusted changes, and some customers have received SMS or phone notifications from banks. According to Red Star News, some banks have made adjustments and started implementing new loan interest rates.
On September 15, Mr. Feng from Chengdu received a message from ICBC informing him that his mortgage met the relevant requirements for the adjustment of the first set of existing housing, and the bank would automatically adjust it on September 25.
In the announcement issued a few days ago, major banks have made it clear that customers who meet the standards of the first set of stock housing do not need to submit an application, and the bank will make centralized adjustments and take the initiative to inform the results. In order to facilitate customers to inquire in advance, from September 12 to 16, China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, etc. have launched the "Stock Housing Loan Interest Rate Adjustment" service, and customers can query the loan amount, principal balance, current execution interest rate, interest rate calculation method, whether the first home loan at the time of issuance and other information after logging in.
Among them, China Construction Bank said that from 8:00 on September 25, customers can inquire about the adjustment results through the "adjustment of existing housing loan interest rate" function through the mobile banking app, "CCB Smart Personal Loan" mini program and other channels. Other Portal inquiries will update interest rate information on September 26. From 8:00 on September 26, customers can log in to the mobile banking app, click "Borrow Money" - "My" interface to check the current repayment amount, click "Details" - "Repayment Plan" to check the repayment amount of each installment of the remaining repayment period after the interest rate adjustment.
Someone "saved a year's salary"
Mortgage lenders will benefit from the reduction of existing mortgage interest rates this time. It is understood that the average magnitude of the nationwide adjustment is about 80 basis points.
On September 20, Zou Lan, director of the Department of Monetary Policy of People's Bank of China, said at a press conference that it is expected that more than ninety percent of eligible borrowers can fully enjoy the policy dividend in the first time, and the interest rates of other borrowers' existing housing loans will also be adjusted by the end of October.
So, how much will mortgage lenders save?
According to the first financial report, for example, Mr. Wang bought a house in Guangzhou in November 2019, when the LPR (loan market quotation rate) for more than 5 years was 4.8%, calculated according to the first house 59 basis points higher, the execution interest rate of the mortgage at that time was 5.39%, Mr. Wang's loan amount was 1 million yuan, the term was 30 years, and the same principal, then, Mr. Wang's mortgage interest totaled 810,000 yuan, and the first monthly payment exceeded 7,200 yuan.
In the following years, LPR continued to be lowered, and Mr. Wang's mortgage interest rate LPR part also decreased, but the plus point remained unchanged, and this year, Mr. Wang's loan interest rate was 4.89% (4.3% up 59 basis points).
According to the operating rules for the reduction of the interest rate of the existing mortgage, Mr. Wang's mortgage interest rate can be directly adjusted to LPR (that is, the increase is 0), that is, the execution interest rate of the mortgage becomes 4.3%, if it is still calculated according to the 30-year term, the total interest is less than 650,000 yuan, less 160,000 yuan, and the first monthly payment is only about 6,400 yuan, 800 yuan less.
For a situation like Mr. Wang's, the statement that "one day saves a year's salary" may not be an exaggeration.
Due to the "one adjustment to the end", Mr. Wang's mortgage interest rate will continue to be lowered next year according to the decline in LPR this year, and from June 20 this year, the LPR of more than 5 years has further dropped to 4.2%.
The second set of transfer to the first set will accept applications from today
Some people pay nearly 2,000 yuan less a month
In this adjustment of the interest rate policy of stock housing, there is a type of customer who was identified as the "second set" when the loan was originally taken, but according to the latest policy of the city where they are located, they need to actively submit an application to the bank, and the interest rate can only be adjusted after the review is approved. According to the recent announcement of various banks, from September 25, the application of "second set to first set" customers will be officially accepted.
According to the bank, customers can submit an application online (such as mobile banking app, mobile banking, etc.) or offline handling bank branches, and provide relevant proof materials for the first home loan when applying, generally the results of the inquiry or identification certificate of the number of housing units issued by the local housing construction, housing management or government affairs center. After receiving the application, the bank will conduct manual review one by one, and if the application is completed before October 22, the bank will adjust the batch approved by the review on October 25. If the October 25 batch adjustment is missed, the customer can still continue to submit the application. At the same time, applications for adjustment will also be accepted for fixed-rate loans or loans priced at the benchmark interest rate from September 25.
In addition to loan users, the reporter also interviewed account managers of a number of large state-owned banks. A customer manager of the Agricultural Bank of China told reporters that Mr. Li, a customer of the bank, whose work unit is an employee of Wuhan Ermei Technology Co., Ltd., applied for a personal first-hand housing loan on January 22, 2018 for the purchase of real estate in Hubei National Exhibition Center Square. On January 24, 2018, the bank issued one transaction of 840,000 yuan to customers with a term of 30 years, the repayment method was equal principal regressive repayment, the interest rate category was fixed interest rate, and the execution interest rate was 5.635% of the personal first-hand housing loan, and the monthly repayment amount of the loan was 5554.7 yuan.
The account manager calculated the adjusted monthly repayment amount for him and informed the customer that the adjusted execution interest rate on September 25 after the conversion rate was 4.3%, and the monthly repayment amount was 4703.33 yuan, which was 851.37 yuan less than the last monthly payment.
A relationship manager of Bank of China told reporters that on September 18, Mr. Tan from Guangxi paid attention to the announcement of the reduction of the interest rate of the existing first home loan on the bank's public account, and went to the outlet to consult related matters. The principal of his loan is 1.53 million yuan, and the current interest rate is 5.77%, and he himself wants to know whether he can enjoy the interest rate reduction this time, and if so, how much it can be adjusted.
It is reported that after inquiring about the loan information, the zero loan manager of the branch said that Mr. Tan currently fully meets the conditions for interest rate reduction, and the minimum can be lowered to the LPR of the corresponding term. Mr. Tan currently has a loan balance of about 1,458,700 yuan, a remaining loan term of 321 months (about 27 years), and a current execution interest rate of 5.77% (LPR+147bp), using the repayment method of equal principal and interest.
According to the zero loan manager of the outlet, after the adjustment on October 25, Mr. Tan's loan interest rate can be reduced from 5.77% (LPR+147bp) to 4.3% (LPR+0bp). Mr. Huang's monthly payment will be reduced from $9,036 to $7,644, with a monthly payment reduction of $1,392, saving $16,704 per year in interest expense and a total reduction of $446,730 over the term of the loan.
In January 2019, Mr. Liu purchased a new house in Beijing and applied for a second-hand housing loan of 2 million yuan at the Beijing Branch of ICBC, with a term of 25 years and a monthly repayment of about 12,700. Since Mr. Liu had used loans to purchase houses in other places, according to Beijing's policy of "recognizing houses and loans" at that time, Mr. Liu's loans were handled in accordance with the policy of interest rates for second-home loans, and the execution interest rate was 1.2 times the benchmark interest rate, that is, 5.88%, which was later converted to LPR pricing and LPR+108BP.
After verification by ICBC, Mr. Liu's family has only one house in Beijing, which meets the current Beijing first housing standard, and the loan interest rate can be reduced to the lower limit of the Beijing first home loan interest rate policy at the time of signing the contract, that is, the LPR does not increase points. After the adjustment, Mr. Liu's loan was actually reduced by 108 basis points, and the monthly repayment was about 10,800, a decrease of nearly 2,000 yuan from before.
This article is synthesized from Daily Economic News, Red Star News, Extreme News, Yicai, etc