Statistics are the most convincing. According to the data released by Rong 360 Data Research Institute, in July 2020, the average interest rate of the first home loan in China was 5.26%. It is worth mentioning that since 2020, the mortgage interest rate has been continuously lowered for seven consecutive months, and it is expected to be further lowered.
Therefore, the interest rate of 5.39% for the first suite is not expensive, and of course it is not cheap. Only equivalent to the current average level, more than enough.
In fact, mortgage interest rates vary from place to place, some high and some low. Some people's mortgage interest rate is 15% off the benchmark interest rate of 4.9%, which is really enviable. There is no such good thing now. On the contrary, there are many people around with mortgage interest rates exceeding 5%.
As for me, I bought a house in Daya Bay, Huizhou, Guangzhou on October 20 18. At that time, the concept of Guangdong-Hong Kong-Macao Greater Bay Area was in full swing, the bank was very strong, and the loan interest rate rose very high. Mine rose by 35%, reaching 6.6 15%.
Mine is not the highest, and some people have risen by 50%, and the mortgage interest rate is over 7%. Compared with them, I am lucky. But on the whole, it's a pity that we bought a house at the wrong time and stood at a high point.
To sum up, the interest rate of 5.39% for the first suite is neither high nor low, which is equivalent to the current national average. As for whether it should be converted into LPR this time? Or choose a fixed interest rate? Personally, I think it is better to choose LPR floating interest rate. Of course, it also varies from person to person, depending on whether an individual has the ability to repay in advance and the length of the remaining loan period.
If your loan has a long remaining life, you'd better choose a fixed interest rate. If you have the plan to repay the loan in advance and have the ability, then it is better to choose LPR, so that you can enjoy the benefits of short-term LPR decline. If LPR rises in the future, you can repay the loan in advance, so that you can kill two birds with one stone.