There are two situations in which the decline of LPR interest rate affects housing loans. For the housing loan customers anchored by LPR interest rate, the housing loan will be reduced accordingly, but it has no effect on the housing loan customers who have not converted LPR interest rate. LPR is a floating interest rate, which may fall or rise, so the housing loans undertaken by the housing loan customers affiliated with LPR also fluctuate. Next, Jin Toubian Xiao introduced whether the mortgage will be reduced because of the reduction of LPR.

Before the central bank announces the change of housing loan interest rate, customers with existing housing loans have the opportunity to convert the anchored interest rate of housing loans into LPR. Is it good or not? In fact, in the short term, China still needs to reduce the financing cost of enterprises, and the country is also trying to lower the market interest rate. Therefore, it is definitely beneficial to switch to LPR in recent years. However, in the long run, LPR may also rise. Therefore, in the long run, it is uncertain whether moving to LPR can benefit mortgage loans.