Conclusion: If your mortgage interest rate has been raised due to market fluctuations, there is still the possibility of further reduction after switching to LPR pricing.

After the mortgage interest rate adjustment is linked to the LPR, if your loan conditions allow conversion, changes in the LPR will directly affect your mortgage interest rate. For example, if your original mortgage interest rate is 10% higher than the base interest rate, and the LPR is lower than this interest rate, your actual interest rate will be reduced after the conversion. Taking the base interest rate of 4.9% and the floating interest rate of 5.39% as an example, compared with the LPR of 4.80%, the difference is 0.59%. This means that after conversion, the interest rate will be adjusted to 4.65% plus the difference, or 5.24%. For a 20-year loan of 1 million yuan, the monthly repayment will be reduced by 84 yuan accordingly.

It is worth noting that if your mortgage was issued before January 1, 2020, or the contract was signed but not issued, and it is priced with floating interest rates, you will be faced with whether to convert the loan pricing basis Selection of plus and minus points for LPR. This directly affects the amount of future repayments. For example, Xiao Zhang’s mortgage originally had a 15% discount on the base interest rate. If it is converted to LPR, his interest rate will be adjusted based on the difference between the then LPR and the original interest rate, such as from 4.165% to 4.8% minus 63.5 basis points. .

In short, under the LPR policy, changes in mortgage interest rates have a certain degree of flexibility, and regular adjustments may bring about a decrease in interest rates. For mortgage borrowers, it is wise to pay attention to LPR changes in a timely manner and adjust strategies according to their own circumstances. move.