On October 12, six major state-owned banks, including the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, the Bank of Communications, and the Postal Savings Bank, as well as a number of banks, including 12 joint-stock banks, successively issued announcements on the batch adjustment of the interest rates of the stock of personal housing loans, introducing the detailed operating rules. Prior to this, a number of banks had disclosed their preliminary plans in the form of FAQs. (For details, see the report "Multiple Banks Issue Guidelines!") The stock of housing loans in Beijing, Shanghai and Shenzhen will be reduced to LPR-30BP)
Judging from the announcement, large banks and joint-stock banks will adjust the interest rates of existing personal housing loans in batches from October 25, except for the interest rate of second home loans in Beijing, Shanghai, Shenzhen and other regions adjusted to the lower limit of the local implementation interest rate, and the interest rates of other eligible stock housing loans will be adjusted to the loan market prime rate LPR-30BP. Eligible borrowers are not required to apply or provide materials, except for some cases where the borrower needs to apply on their own initiative.
As for the "how much money can be saved" after the adjustment, which the borrower is most concerned about, according to the case provided by ICBC in the early Q&A, if the borrower has a house in a second-tier city, the current mortgage interest rate is LPR without a point (3.85%), and the adjusted mortgage can save about 170 yuan per month with a loan amount of 1 million yuan, a 30-year term, and equal principal and interest, and a total of about 61,000 yuan in interest; if the borrower has a house in a first-tier city, the current mortgage interest rate is LPR+55BP (the interest rate policy of the first home loan at the time of loan issuance), that is, 4.4%, calculated based on a mortgage with a loan amount of 1 million yuan, a 25-year term, and equal principal and interest, the adjusted monthly expenditure can save about 469 yuan, and the total interest saving is about 140,600 yuan.
Based on the implementation rules for the adjustment of the interest rate of the stock mortgage of the six major banks, Yicai has made a key combing:
1. Adjust the scope
According to the announcements of various banks, the scope of the new round of interest rate adjustment for existing housing loans is the commercial personal housing loans issued for the purpose of purchasing residential buildings, including the first, second and above sets, involving ordinary pure commercial personal housing loans and commercial personal housing loans in provident fund portfolio loans. The adjustment condition is that the implementation interest rate is higher than -30BP on the basis of LPR, and the mortgage interest rate is already lower than LPR-30BP, and they will not participate in this adjustment.
It is worth noting that the adjustment of the interest rate of the existing housing loans of each bank only adjusts the plus or minus points of the loan interest rate, and other contract elements (such as loan balance, remaining term, repricing date, repricing cycle, etc.) remain unchanged.
2. Adjust the rules
The first home loans with interest rates higher than LPR-30BP in Beijing, Shanghai, Shenzhen and other regions and all existing housing loans with interest rates higher than LPR-30BP in other regions will be adjusted to LPR-30BP.
If the interest rate of the second home loan in Beijing, Shanghai, Shenzhen and other regions is higher than the lower limit of the corresponding policy, it will be adjusted to the lower limit of the corresponding local policy (LPR-25BP outside the 5th Ring Road in Beijing, LPR-5BP in the 5th Ring Road in Beijing; Shanghai Free Trade Zone Lingang New Area and Jiading, Qingpu, Songjiang, Fengxian, Baoshan, Jinshan District LPR-25BP, other areas LPR-5BP; LPR-5BP under the jurisdiction of Shenzhen).
3. Automatic and unified adjustment
The existing personal housing loans (including the first, second and above) that meet the floating rate pricing method will be uniformly adjusted without the borrower's application.
4. If you need to apply actively
For fixed-rate and benchmark interest rate mortgages, the borrower is required to apply for conversion to a floating interest rate, and convert the LPR of the corresponding tenor of the latest month into a mark-up form, which is equal to the difference between the original contract interest rate level and the latest LPR. After the conversion, if the interest rate level is higher than the LPR-30BP, the increase will be adjusted to the above lower limit. Interest rate conversion cannot be reversed back to fixed or benchmark rate pricing.
For second-set housing loans in Beijing, Shanghai, Shenzhen and other regions, if the borrower meets the conditions for second-to-first-home loans, the borrower can apply online or offline for "second-to-first-home loans" from various banks, and after the bank reviews and meets the conditions, it will be converted into a first-home loan, and then the interest rate will be adjusted according to the above-mentioned adjustment rules.
In addition, Bank of Communications also mentioned that for special circumstances that require the replacement of new loans, borrowers can apply to loan agencies from October 25, 2024. At the same time, it is emphasized that the adjustment of the interest rate of the existing housing loan does not support inter-bank replacement.
5. The time for unified adjustment and independent application adjustment
For eligible existing personal housing loans, the six major banks will adjust the contract loan interest rate in batches on October 25, 2024, which will take effect on the same day, that is, the new interest rate level will be implemented from the same day after the batch adjustment, and the interest before the adjustment will be calculated according to the original contract interest rate level.
The requirements for the application of fixed interest rate or benchmark interest rate pricing to floating interest rate pricing, "two sets to the first set" of the time are slightly different, mainly concentrated from the date of the announcement to October 22 ~ 24 (inclusive), and some banks can apply from October 13, including mobile banking or loan service banks, after the review is passed, each bank will adjust the loan interest rate in batches on October 25, and the new interest rate level will be implemented from that day.
Starting from October 25, 2024 (inclusive), borrowers can still continue to initiate the application for pricing method conversion and "second set to first set" through mobile banking or loan service banks, and each bank will adjust the interest rate of eligible loans on the date of successful conversion.
According to the announcements of various banks, borrowers' applications for adjustments, inquiries and other matters can be handled through both online and offline channels. After the interest rate adjustment, most banks will inform the borrower of the adjustment result in the form of SMS, but due to the large scale of batch adjustment business, some banks have prompted that there may be time differences, delay in timeliness, and delivery failures in SMS sending.
For borrowers whose loans can be included in this batch adjustment but do not agree to the adjustment, the borrowers can contact the loan agency before the corresponding date required by the banks and submit a written application for disagreeing with the adjustment. After the batch reduction, if the adjustment is not accepted, the borrower can still contact the loan handling bank to apply for cancellation within a certain period of time, and the time requirements of each bank are different.
6. Some special circumstances
If the effective date of the interest rate adjustment change (October 25) falls between the borrower's two repayment dates, the borrower's repayment amount in October will be divided into two periods: before and after the adjustment.
For example, Bank of Communications said that if the mortgage interest rate changes take effect on October 25, the borrower's October mortgage repayment date will be 28 days, and the repayment date after the interest rate adjustment will still be the 28th of each month, but the repayment amount will be calculated in two stages, that is, the original interest rate will be calculated before the adjustment (i.e., September 28 to October 24), and the new interest rate will be calculated after the adjustment (i.e., October 25 to October 27). From the next month onwards, interest will be calculated at the new interest rate for the entire month.
In addition, it is worth noting that Hengfeng Bank and others emphasized in the announcement that the interest rate adjustment of overdue personal housing mortgage loans will not be carried out temporarily, and the borrower can apply for interest rate adjustment after repaying the outstanding principal and interest.
Zheshang Bank also said that from October 25, 2024, for the existing housing loans that have not been adjusted in batches due to overdue and non-performing loans in the previous period, as well as the existing housing loans that have not applied for conversion to LPR floating interest rate before October 25, 2024, or the existing housing loans that have been adjusted before October 25, 2024 but have been approved after October 25, 2024, if they currently meet the conditions for interest rate adjustment, borrowers can still use the bank's mobile banking, If an application for adjustment of the interest rate of the existing housing loan is submitted to the loan service bank through online channels such as WeChat Mini Programs or to the loan service bank, the bank will review each case and implement the new interest rate from the date of approval, and the interest on the previous loan will be calculated according to the original contract interest rate.
(This article is from Yicai)