The central bank has announced that it will resolutely implement the positioning of housing is for living, not for speculation and the long-term management mechanism of the real estate market. In the process of reforming and improving the formation mechanism of the loan market quotation rate (LPR), it will ensure the effective implementation of the regional differential housing credit policy and maintain the basic stability of the interest rate of individual housing loans.
At the end of July this year, the meeting of the Political Bureau of the Central Committee stressed once again that we should adhere to the orientation that houses are used for living, not for speculation, implement the long-term management mechanism of real estate, and not use real estate as a short-term means of stimulating the economy.
Reporters noted that since Oct. 8, the interest rate of mortgage loans has been formed on the basis of LPR. After the exchange of interest rates, the interest rates of some banks have risen relatively.
The central bank requires that after October 8, the interest rate of the first commercial individual housing loan should not be lower than the corresponding term LPR, and the interest rate of the second commercial individual housing loan should not be lower than the quoted rate of the corresponding term loan market plus 60 basis points.
The latest LPR data released on September 20 showed that LPR over five years remained at 4.85%, but fell by five basis points over a one-year period. The benchmark of medium and long-term interest rates remains unchanged, consistent with the intention of policy makers to maintain the stability of mortgage interest rates.
According to this requirement of the Central Bank, if the mortgage term is more than five years, the interest rate of the first commercial personal housing loan should not be less than 4.85%.
Previously, banks issued personal housing loans, floating up and down according to the benchmark lending interest rate table, and the benchmark lending interest rate for more than five years was 4.90%.
Although the pricing benchmark has been lowered after the change of anchor, in fact, there are not a few banks whose mortgage interest rate remains above 5%.