For the stock floating rate mortgage within the range of batch conversion, if the customer himself does not operate the conversion, the bank does automatically convert it, and the default unified adjustment is LPR pricing method (that is, LPR is added as the pricing benchmark for the corresponding period). Of course, customers themselves can also take the initiative to convert, and they can choose to convert to LPR or fixed interest rate. After being converted into LPR by default by the bank, if the customer has any objection to the conversion result, he can also apply for the conversion within the specified time to restore the benchmark interest rate of the central bank loan under the original contract.

How long will the floating interest rate of mortgage be adjusted?

If the mortgage adopts floating interest rate, the frequency of adjustment depends on the repricing cycle selected by the customer. If the repricing cycle of commercial individual housing loan interest rate is not agreed, it will be adjusted once a year by default. If there is an agreement, it shall be adjusted according to the agreement between the user and the bank. At that time, on the re-pricing day, the designated basis point will be calculated with the latest LPR to get a new interest rate, and then the new interest rate will be implemented in the next cycle. If the customer chooses a fixed interest rate, the interest rate will remain unchanged throughout the repayment period.

Of course, we also need to note that if the loan is a personal housing provident fund loan, although the floating interest rate policy is adopted, if the central bank does not adjust the benchmark interest rate of the loan during the whole repayment period, the customer's mortgage interest rate will not actually change. If the central bank adjusts, the new interest rate will be implemented the following year.

Choose fixed interest rate or floating interest rate for housing loan.

Whether a customer implements a floating interest rate policy or a fixed interest rate after handling a personal commercial housing loan mainly depends on the customer's own needs and the judgment of the subsequent LPR trend. If the customer thinks that the current interest rate of his mortgage is economical enough, he can choose a fixed interest rate. In this way, no matter how the LPR quotation is adjusted, the customer's mortgage interest rate will remain unchanged at the time of signing the contract. And if the interest rate is not particularly low when the customer applies for a mortgage, and he thinks that LPR is likely to go down in the future, he can choose floating interest rate. In this way, the mortgage has a re-pricing cycle. After each re-pricing cycle, on the re-pricing day, the designated basis point is calculated according to the new LPR quotation to get a new interest rate (once the basis point is determined, it will remain unchanged during the subsequent loan period), and then it will be implemented in the next cycle.