For a loan contract whose pricing basis is the LPR interest rate, the rise or fall of the interest rate is generally expressed by the interest rate floating range. 1BP is 1 basis point, which is converted into an interest rate of 0.01. Therefore, the interest rate floating range of 108BP means that in LPR interest rate is based on 1.08.

For example: a user’s housing loan period is 10 years, the contract signing date is October 29, and the interest rate floating range is 108BP. Then the user's actual housing loan interest rate is 4.65 1.08 = 5.73.

The interest rate floating range will remain unchanged during the contract period, but if the interest rate change method is a floating interest rate, then on each repricing date, the actual execution interest rate will be based on the latest LPR interest rate before the repricing date. Recalculate.

Will the basis points added after LPR change?

Banks may change the number of basis points added to LPR based on local market conditions, local implementation policies and other factors. For example, a bank previously stipulated that The LPR for the first house will be increased by 100 basis points, and the LPR for the second house will be increased by 120 basis points. Later, the mortgage interest rate increased, and it became: the LPR for the first house will be increased by 105 basis points, and the LPR for the second house will be increased by 135 basis points. Not only will the basis point change, LPR will also be repriced on the 20th of every month.

It’s just that everyone needs to pay attention. If you formally apply for a mortgage, the mortgage interest rate stipulated in the signed loan contract is LPR plus a certain number of basis points. Then during the subsequent loan period, the basis points will remain fixed. .

Even if the mortgage interest rate will be re-priced, it will still depend on the change in LPR. Of course, the repricing cycle of a mortgage is generally more than one year, so for customers who have successfully obtained a mortgage, their mortgage interest rates will not change every month following the LPR. They will remain unchanged during the cycle. They will not change until the repricing day. The new mortgage interest rate is calculated based on the latest corresponding period LPR, plus the basis points originally agreed in the contract.