Im sure I wont go back to the original rate. Ms. Chang, who works in Beijing, told the Securities Daily that she bought a house in her hometown Xinyang, Henan Province in 2016, and applied for a loan for 15 years in the Henan Branch of a large state-owned bank. At that time, the annual interest rate at the time of signing the contract was 4.9%. Later, the bank staff calculated for me that the pricing benchmark after conversion to LPR was LPR plus 10 basis points. If the LPR of the latest 5-year period was 4.65%, the interest rate was 4.75%, which was more cost-effective than before.
Coincidentally, another Lu Xiaoxiao (pseudonym), who bought a house in Zhengzhou, Henan Province, told the Securities Daily that at the beginning of 2018, she made a loan in Henan Branch of a local large state-owned bank in Zhengzhou. The loan term was 20 years, and the loan interest rate at that time was 15% higher than the benchmark interest rate of 4.9%, or 5.635%. After the batch conversion of LPR, according to the loan details of the banks app, the new pricing benchmark is LPR plus 83.5 basis points. The interest rate after conversion is 5.485%, which is 15 basis points lower than the previous interest rate. Therefore, she also indicated that she did not intend to return the interest rate agreed in the original contract.
I didnt know much about LPR conversion at that time. When people around me said they wanted to transfer, they hesitated, and finally they automatically converted to LPR. Mr. Wang, who bought a house in Beijing at the end of 2018, told the Securities Daily that his house purchase interest rate at that time was also higher than the benchmark interest rate (5.24%). After it was converted into LPR, he checked the app of the loan bank, and the converted interest rate showed LPR plus 59 basis points. Currently, the interest rate after conversion was equal to 5.24%. However, I dont intend to switch back. Recently, I have read a lot of relevant news, saying that in the long run, LPR will still decline, so after pegging to LPR, interest rates may be lower in the future.
Among the mortgage families interviewed by Securities Daily, the vast majority of the loan families who convert LPR in batches do not consider returning to the agreed interest rate of the original contract, and they almost all share the same view with Mr. Wang, that is, LPR will go down in the future. My husband knows more about finance. At that time, he calculated for me that after converting into LPR, the monthly mortgage payment can be reduced by more than 100 yuan. If the LPR drops again, it will be less and more. Said Ms. Xu, who lives in Beijing.
From the LPR quotation, LPR has remained unchanged for seven consecutive months after the offer was released on November 20. Judging from the actual situation, the adjustment of LPR and MLF is synchronous. At present, Chinas economy is stable, and the monetary policy is mainly stable. In the short term, it is less necessary to reduce the policy interest rate. It is expected that the LPR quotation will remain stable in recent months. But in the long run, the central bank will continue to deepen the LPR reform, and the downward trend of interest rates is still the future trend. Zhang Wei, chief researcher of Kunlun Health asset management, told Securities Daily.
On November 24, the reporter of Securities Daily consulted the staff in charge of personal business of a large state-owned bank as a lender. The other side said, whether or not to transfer back is completely based on the personal consideration of the borrower. If it needs to be reversed, it should be handled before December 31. It can be done from the bank app online or at the bank counter. However, the reversal operation can only be carried out once, so the handler must consider it clearly.
Source of this article: Yang Qian, editor in charge of Securities Daily_ NF4425