Relevant central bank officials answered how to price the interest rate of personal housing loans after the reform, saying that after the reform, the new commercial personal housing loan interest rate was formed with the LPR of the corresponding period of the latest month as the pricing benchmark plus point. Once the Added-Point value is determined, it will remain unchanged throughout the contract period.
It is worth noting that there are two kinds of LPR with one-year and more than five-year maturities, and the interest rates of individual housing loans with one-year and more than five-year maturities have a direct corresponding benchmark. People in charge of the central bank said that the benchmark of interest rates for individual housing loans within one year and between one and five years could be chosen by the lending banks independently between the two maturities. After the reference benchmark is determined, the term spread factor can be reflected by adjusting the Added-Point value.
Source: Author of New Beijing News: Cheng Weimiao Hou Runfang, responsible editor: Wang Ning_NB12468