Why do you want to change careers?
According to the requirements of the central bank, starting from March 1 2020, financial institutions should negotiate with existing floating-rate loan customers about the conversion terms of the pricing benchmark, and convert the interest rate pricing method agreed in the original contract into an LPR pricing benchmark plus item (the plus item can be negative), and the plus item will remain unchanged during the remaining period of the contract; It can also be converted into a fixed interest rate.
According to the central bank, LPR has been used as the pricing benchmark for most new loans, but the pricing benchmark for existing floating rate loans is still mainly the loan benchmark interest rate. Since June 20 15 and 10, the benchmark interest rate of the loan has remained unchanged. Compared with the benchmark loan interest rate, LPR has a higher degree of marketization, which can reflect the changes of market interest rate in time, and has dropped several times since August 2065438+2009.
In order to protect the rights and interests of both borrowers and borrowers, especially to enable borrowers to enjoy the benefits brought about by the downward interest rate, the central bank has made it clear that from March 2020, the pricing benchmark of the existing floating rate loans will be changed from 1.
What loans need to be converted into shares?
The central bank said that the loan that needs to change the pricing benchmark must meet several conditions at the same time: first, it has been issued before 2020 1, or it has been signed but not issued; Second, the reference loan benchmark interest rate pricing; The third is floating interest rates.
Fixed rate loans, floating rate loans with reference to the loan market quotation (LPR), etc. No conversion is required. In the last repricing cycle, the floating-rate loan of inventory shall not be converted.
Provident fund personal housing loans do not need to be converted, but commercial personal housing loans in portfolio loans should also be converted into pricing benchmarks.
Which is better, LPR or fixed interest rate?
The central bank said that the two conversion methods have their own advantages, and the specific choice depends on their own judgment, especially on the future interest rate trend. If we think that LPR will decline in the future, it will be better to refer to LPR pricing instead; If you think LPR may rise in the future, it will be beneficial to switch to a fixed interest rate.
For example, if your current personal mortgage interest rate is 10% of the benchmark interest rate for a five-year loan, then your real interest rate is 4.4 1%(=4.9%×0.9) based on the current benchmark interest rate for a five-year loan. According to Announcement [20 19] No.30 of the People's Bank of China, the interest rate level of personal mortgage is unchanged before and after the conversion.
First, if you choose to switch to a fixed interest rate, the personal mortgage will be subject to the interest rate of 4.4 1% during the remaining period of the contract.
Second, if you choose to refer to LPR pricing instead, the personal mortgage interest rate will be determined according to "LPR+(-0.39%) for more than five years". Among them, -0.39 is the fixed-point spread, which is determined according to the difference between the current actual interest rate (4.4 1%) and the LPR(4.8%) published in February 20 19 for more than five years. From the conversion to the first repricing date, the mortgage interest rate is still 4.4 1%, but the calculation method becomes "lpr 4.8%+(-0.39%)"; From the first repricing date, the mortgage interest rate will become "the latest five-year LPR+(-0.39%)"; And so on, every repricing day.
Comparing the above methods, it is obvious that if LPR+(-0.39%) >: 4.4 1%, that is, LPR > 5 years; 4.4 1%+0.39%=4.8%, which means that the future LPR is higher than 4.8%, so you can choose the first one; On the other hand, if it is judged that the future LPR is lower than 4.8%, the second scheme can be selected.
Will the bank deliberately raise the LPR offer?
The central bank said that the LPR quotation mechanism has tried its best to ensure the true quotation of the quotation bank and make the published LPR fair. 18 LPR quotation banks are all of the same type, with strong influence, credibility and pricing power, and need to quote the best customers according to the bank's loan interest rate, which means that the quotations of quotation banks are supported by real transactions.
At the same time, the central bank and the self-discipline mechanism of interest rate pricing strictly supervise the quotation behavior of each quotation bank, regularly evaluate its quotation quality, and carry out the survival of the fittest according to the evaluation.