Central Bank: Adjusting the Interest Rate of New Commercial Individual Housing Loan from Oct. 8

category:Hot
 Central Bank: Adjusting the Interest Rate of New Commercial Individual Housing Loan from Oct. 8


1. Since October 8, 2019, the interest rate of newly issued commercial personal housing loans has been formed with the quotation rate of the loan market for the corresponding period of the latest month as the base plus point of pricing. The added value should meet the national and local housing credit policy requirements, reflect the loan risk situation, and the contract period should be fixed and unchanged.

2. When a borrower applies for a commercial personal housing loan, he may negotiate with a banking financial institution to agree on a period of interest rate revaluation. The minimum period of revaluation is one year. The interest rate rebalancing date and the pricing benchmark are adjusted to the loan market quotation rate for the corresponding period of the latest month. The period of interest rate revaluation and the way of adjustment should be specified in the loan contract.

3. The interest rate of the first commercial individual housing loan shall not be lower than the quotation rate of the corresponding term loan market. The interest rate of the second commercial individual housing loan shall not be lower than the quotation rate of the corresponding term loan market plus 60 basis points.

Fourthly, the provincial branches of the Peoples Bank of China should guide the self-regulation mechanism of interest rate pricing in provincial markets according to the principle of implementing policy according to the city, and on the basis of the unified national credit policy and according to the changes of the local real estate market situation, determine the lower limit of the first set and two sets of commercial personal housing loan interest rates in their jurisdiction.

Fifthly, banking financial institutions should clarify the pricing rules of commercial individual housing loan interest rate according to the lower limit of the added point determined by the self-regulation mechanism of interest rate pricing in each provincial market, combined with the operation situation of the institution, customer risk situation and credit conditions, and reasonably determine the specific added point value of each loan.

6. Banking financial institutions should earnestly provide policy publicity, explanation and consultation services, guarantee the contractual rights of borrowers and consumersrights and interests according to law and regulations, strictly prohibit the provision of mortgage refinancing and mortgage refinancing services for personal housing loans, and ensure the smooth and orderly progress of relevant work.

7. Prior to October 8, 2019, commercial individual housing loans issued and commercial individual housing loans that have signed contracts but have not been granted shall still be implemented as stipulated in the original contract.

8. The interest rate of commercial housing purchase loan shall not be lower than the quotation rate of corresponding term loan market plus 60 basis points. The interest rate policy of individual housing loan of provident fund will not be adjusted for the time being.

Relevant Personnel in Charge of the Peoples Bank of China Answer ReportersQuestions on the Interest Rate of Individual Housing Loan

1. What is the background of the announcement?

The interest rate of individual housing loan is an integral part of the loan interest rate system. In the process of reforming and perfecting the formation mechanism of loan market quotation rate (LPR), the pricing benchmark of individual housing loan also needs to be converted from the benchmark interest rate of loan to LPR in order to play a better role in the market. At the same time, the interest rate of individual housing loan is also an important part of the long-term management mechanism of the real estate market and the regional differential housing credit policy. In order to implement the orientation of housing is for living, not for speculation and the long-term management mechanism of the real estate market, ensure the smooth and orderly conversion of pricing benchmarks, maintain the basic stability of the interest rate of personal housing loans, and safeguard the legitimate rights and interests of both borrowers and lenders, the Peoples Bank of China issued a public announcement to clarify the correlation between the adjustment of the interest rate of personal housing loans. Matter.

2. How to price the interest rate of personal housing loan after the reform?

After the reform, the interest rate of newly issued commercial personal housing loans was formed with the LPR of the corresponding period of the last month as the pricing benchmark plus point. Among them, LPR is formed by the quotation of interest rate quotation bank in loan market. The specific incremental value of each loan shall be agreed upon by the lending bank in accordance with the requirements of the national and local housing credit policies, taking into account the loan risk situation, and negotiating with the borrower when issuing the loan. Once the Added-Point value is determined, it will remain unchanged throughout the contract period.

3. How to understand the corresponding period when determining the pricing benchmark?

At present, LPR has one-year and more than five-year varieties. Individual housing loan interest rates for one-year and more than five-year periods have a direct corresponding benchmark. The benchmark of individual housing loan interest rates for one-year and one-to-five-year periods can be chosen by the lending bank independently between the two types of term. After the reference benchmark is determined, the term spread factor can be reflected by adjusting the Added-Point value.

4. What is interest rate revaluation?

Interest rate revaluation refers to that the loan bank determines the new loan interest rate level according to the change of the pricing benchmark according to the calculation method stipulated in the contract. The announcement specifies that the period of interest rate redistribution for individual housing loans can be agreed upon by both parties through consultation, the shortest being one year and the longest being the contract term. Borrowers and lending banks can choose according to their own interest rate risk bearing and management capabilities. Each time the interest rate is re-priced, the pricing benchmark is adjusted to the LPR of the corresponding period of the last month.

5. What impact does it have on households?

The announcement mainly aims at the newly issued interest rate of personal housing loan, and the interest rate of the stock personal housing loan is still implemented according to the original contract. After the conversion of the pricing benchmark, the interest rate of the first new set of personal housing loans issued nationwide shall not be lower than the corresponding term LPR (4.85% according to the LPR above the 5-year period of August 20); the interest rate of the two sets of personal housing loans shall not be lower than the corresponding term LPR plus 60 basis points (5.45% according to the LPR above the 5-year period of August 20), which is similar to the current individual housing in China. The real minimum interest rate of loans is basically the same. At the same time, the branches of the Peoples Bank of China will guide the provincial market interest rate pricing self-regulation mechanism to determine the local LPR plus point lower limit in time. Compared with before the reform, when households apply for personal housing loans, the interest expenditure is almost unaffected. 6. When will it be implemented? October 8, 2019 is the conversion day of pricing benchmark. Before that, loan banks need to modify loan contracts, upgrade systems, organize staff training, and take various ways to do a good job of publicity and interpretation for customers to ensure that the transformation process is smooth and orderly. By October 8, 2019, loans that have been granted and signed but have not been granted are still executed in accordance with the original contract.

The announcement mainly aims at the newly issued interest rate of personal housing loan, and the interest rate of the stock personal housing loan is still implemented according to the original contract. After the conversion of the pricing benchmark, the interest rate of the first new set of personal housing loans issued nationwide shall not be lower than the corresponding term LPR (4.85% according to the LPR above the 5-year period of August 20); the interest rate of the two sets of personal housing loans shall not be lower than the corresponding term LPR plus 60 basis points (5.45% according to the LPR above the 5-year period of August 20), which is similar to the current individual housing in China. The real minimum interest rate of loans is basically the same. At the same time, the branches of the Peoples Bank of China will guide the provincial market interest rate pricing self-regulation mechanism to determine the local LPR plus point lower limit in time. Compared with before the reform, when households apply for personal housing loans, the interest expenditure is almost unaffected.

6. When will it be implemented?

October 8, 2019 is the conversion day of pricing benchmark. Before that, loan banks need to modify loan contracts, upgrade systems, organize staff training, and take various ways to do a good job of publicity and interpretation for customers to ensure that the transformation process is smooth and orderly. By October 8, 2019, loans that have been granted and signed but have not been granted are still executed in accordance with the original contract.