Original title: mortgage interest rate to change! Central bank announced today heavy news, what impact on you
4hw.com.cn on December 28, the people's Bank of China announced that it would start to convert the pricing benchmark of floating rate loans. What do you mean by that?
The benchmark of your mortgage interest rate has changed! Before, when we talked about the mortgage interest rate, we said 'how much discount is the benchmark interest rate' or 'how much the benchmark interest rate will rise'; now, when we talk about the mortgage interest rate, we mean 'how much will the LPR interest rate go down' or 'how much will the LPR interest rate rise'.
What is the impact of this change on individuals? Continue to look down and see whether the housing loan interest rate is high or low?
1. In 2020, the interest rate of stock mortgage will be the same as before
The central bank stipulates that the interest rate level will remain unchanged at the time of conversion. Wen bin, chief researcher of China Minsheng Bank, said,
This means that personal mortgage rates will remain unchanged in 2020.
That is to say, in 2020 when the conversion, your mortgage interest rate level is the same as before, no change.
2. What about after that? Will the mortgage interest rate change?
It will change.
Because the LPR rate will change. In 2019, the 5-year LPR rate linked to personal housing loans will be cut by 5 basis points.
The central bank stipulates that a repricing cycle, with a minimum of one year, can be agreed between individuals and banks.
That is to say, from January 1, 2021, the mortgage rate may change with the change of the 5-year LPR rate.
When switching, individuals face two choices:
The first is to choose a fixed rate.
The mortgage interest rate and your current interest rate remain unchanged, and no matter how the LPR interest rate changes in the future, your mortgage interest rate will remain unchanged;
The second is to choose a floating rate.
The interest rate of mortgage changes according to the change of LPR.
What should I do when the transition starts?
1. After the conversion starts, attention should be paid to the official website and outlet announcements, SMS, e-mails, mobile banking and telephone notification of the banks that handle housing loans,
Choose the most convenient way to change the original personal mortgage contract terms.
2. Pay attention to time:
In principle, it should be completed before August 31, 2020 between March and August 2020. Individuals can complete the change within this time period. Heavy message, forward Zhouzhi!