What do you mean? In other words, starting from today, as long as your mortgage meets the LPR conversion conditions and you have not yet chosen whether to convert it, the bank will automatically convert it to LPR for you without your consent.
Many netizens have said that this is a blatant breach of contract by banks, and it is a renege. This is a forced conversion, which is illegal.
Is this statement true? No matter what the purpose, this practice of banks makes many people very disgusted. On the one hand, this aversion stems from the bank's unilateral modification of the contract, on the other hand, it stems from the image of the bank as a "landlord" in the hearts of the people for many years, which is similar to the existence of a "vampire". How can it take the initiative to do things that benefit the country and the people?
However, this time, many people may be really wrong, and the transformation of LPR may benefit most ordinary people.
According to the regulations of the central bank, for the existing active interest rate loans before February 3 1, in principle, the conversion of interest rate pricing method should be completed between March 1 and August 3 1 in 2020.
In other words, no matter which way the mortgage loan is converted to, you must complete the choice before August 3 1. Before August, there were still many homebuyers who did not change their mortgages. Although the bank promoted it by telephone and SMS, many people still didn't buy it.
The bank decided to convert all mortgage loans that were not converted into LPR, which may indeed be based on the interests of the people. They believe that converting to LPR is beneficial to the people. In addition, this transformation has not yet been finalized. As long as you don't want to convert to LPR, you can still convert to fixed interest rate before February 65438+3 1 in 2020.
Why do banks convert all unconverted mortgages into LPR? Because it has nothing to do with the amount of the original mortgage, it only depends on whether the LPR is rising or falling. If LPR falls, mortgage interest rate will fall, LPR will rise, and mortgage interest rate will naturally rise. From this point of view, mortgage LPR conversion is risky.
However, the trend of LPR is actually traceable. In the 1990s, China's benchmark loan interest rate was close to 10%, and it dropped to 7% in 2007. In 2065,438+09,65,438+02, the five-year LPR decreased to 4.8%, which was 5 percentage points lower in the past 30 years.
Since the beginning of this year, the five-year LPR has decreased by 1.5 percentage points in four months, and remained unchanged for four months.
The downward trend of LPR is obvious in both short-term and long-term. In addition, compared with Europe, America and some developed countries, our loan interest rate is still at a high level. In many developed countries, the interest rate has fallen below 65,438+0%, the Federal Reserve hovers around 0 interest rate, and Japan has entered the era of negative interest rate.
It can be seen that there is still much room for LPR to fall in China.
Most of China's loans are invested in the real estate market, but as we all know, it is impossible for China to become a developed country by relying on real estate, and the real economy will always support the development of a country. The central bank has made it clear that credit funds will tilt towards the real economy in the future.
On August 6th, the website of the People's Bank of China released the Report on the Implementation of Monetary Policy in China in the Second Quarter of 2020, which requires that monetary and credit policies play a role in promoting economic restructuring and better serve the real economy.
Lowering interest rates will help reduce the financing cost of the real economy, reduce the burden on enterprises in the real economy, and be conducive to the development of the real economy. Especially after the "Black Swan" incident, the global economy was seriously affected, and China was no exception. At this time, it is more important to promote the development of the real economy by giving play to the credit policy.
It can be seen that the momentum of interest rate cuts in the future will continue.
The transformation of LPR teaching is the decision of the state. From the perspective of financial macro-control, this is based on national interests, so you don't have to worry. To take a step back, even if LPR rises in the future, it will be the vast majority of people who will lose, not just yourself. In addition, the probability of LPR is decreasing.
In addition, is there another possibility, that is, the state vigorously promotes LPR conversion, so as to pave the way for lowering house prices and reduce the losses of mortgage buyers by paying less mortgage interest? Although it is not much, it is at least a kind of comfort, which has played a calming role. Nothing is impossible for today's real estate market!
Therefore, it is a good thing to convert the mortgage LPR into a high probability, so you don't have to worry!