According to the announcement, starting from March 1 2020, financial institutions should negotiate with customers of existing floating rate loans on the conversion terms of the pricing benchmark, and convert the interest rate pricing method agreed in the original contract into LPR as the pricing benchmark. Among them, the conversion of the pricing benchmark of commercial individual housing loans should be based on the consensus of both parties, and the original contract terms should be changed as simply as possible.
According to the industry, the policy shows that the timetable for the promotion and application of LPR is obviously ahead of schedule, and the interest rate marketization process is further accelerated, but it will not stimulate market expectations.
Complete the conversion of pricing benchmark before the end of August next year.
On August 7th, 20 19, the People's Bank of China issued an announcement on reforming and improving the formation mechanism of the quoted interest rate (LPR) in the loan market. The relevant person in charge of the central bank said that at present, nearly 90% of the new loans have been priced with reference to LPR, but the stock floating rate loans are still priced on the basis of the loan benchmark interest rate, which cannot reflect the changes in market interest rates in time, which is not conducive to protecting the rights and interests of both borrowers and lenders. In order to further deepen the reform of LPR, the People's Bank of China issued Announcement No.30 [20 19] to promote the smooth conversion of the existing pricing benchmark of floating rate loans.
Among them, the floating interest rate loan in stock refers to the floating interest rate loan (excluding provident fund personal housing loan) issued by financial institutions before June 65438+1 October12020, but signed without reference to the benchmark interest rate of the loan. Since June 5438+ 10/day, 2020, financial institutions are not allowed to sign floating interest rate loan contracts with reference to the benchmark loan interest rate.
According to the announcement, starting from March 1 2020, financial institutions should negotiate with existing floating-rate loan customers on the conversion terms of the pricing benchmark, and convert the interest rate pricing method agreed in the original contract into an LPR pricing benchmark plus item (the plus item can be negative), and the plus item will remain unchanged for the remaining term of the contract; It can also be converted into a fixed interest rate.
The reporter noted that the pricing benchmark can only be converted once and cannot be converted again after conversion. At the same time, the existing floating rate loans that have been in the last repricing cycle shall not be converted. In principle, the conversion of the pricing benchmark of floating rate loans should be completed before August 3, 20201.
Specifically, the pricing benchmark of floating rate loans is converted into LPR, and the added value is determined by both borrowers and borrowers through consultation, except for commercial personal housing loans. The value-added of commercial personal housing loans should be equal to the difference between the latest interest rate of the original contract and the corresponding term LPR issued in February 20 19. From the conversion point to the first re-pricing date after that point (excluding), the execution interest rate level shall be equal to the latest execution interest rate level of the original contract, that is, the sum of LPR and value-added during the corresponding period of 20 19. Thereafter, from the first repricing date, the interest rate level is recalculated on each interest rate repricing date, and is determined by the corresponding period LPR and added value of the latest month.
In addition, financial institutions can renegotiate the repricing period and repricing date when negotiating the pricing benchmark conversion terms with customers, and the shortest repricing period for commercial personal housing loans is one year. If the stock floating interest rate loan is converted into a fixed interest rate, the converted interest rate level shall be determined by the borrower and the borrower through consultation, and the converted interest rate level of commercial personal housing loan shall be equal to the latest interest rate level of the original contract.
According to industry insiders, this adjustment is conducive to comprehensively promoting interest rate marketization.
Jaco, chief analyst of 58 Anjuke Real Estate Research Institute, said that the central bank announced to promote the conversion of the pricing benchmark of floating rate loans, with the aim of better reflecting the interest rate changes in a market-oriented way. Since the existing mortgage interest rate is still adjusted regularly according to the benchmark interest rate, this adjustment will be more conducive to promoting the comprehensive interest rate marketization.
Jaco pointed out that from the policy point of view, there are two points worthy of attention. First, for existing loans, lenders can have the option, that is, they can choose to convert at LPR or fixed interest rate, which is conducive to better protecting the rights and interests of lenders and promoting orderly conversion; The second is to provide enough transition time. From March 1 to August 3 1 in 2020, the transition period is long, which can ensure a smooth transition process.
Dong Ximiao, chief researcher of Wang Xin Bank and chief researcher of Zhongguancun Internet Finance Research Institute, analyzed in an interview that Announcement No.30 issued by the central bank made it clear that since June 5438+ 10/day, 2020, financial institutions are not allowed to sign floating-rate loan contracts with reference to the benchmark loan interest rate pricing, which indicates that the timetable for popularizing and applying LPR is obviously advanced, and the interest rate marketization process is further accelerated. Implementing the benchmark conversion of stock floating interest rate loans, accelerating and expanding the application of LPR in stock loans, and making LPR the benchmark of loan pricing in an all-round way will help to better play the key role of LPR in loan pricing, make the loan interest rate reflect the change of market interest rate in time, improve the transmission effect of monetary policy and improve the efficiency of financial resource allocation.
Dong Ximiao pointed out that there are two conversion methods for stock mortgage pricing. Either way, the converted mortgage interest rate is not lower than the original interest rate in principle, unless the LPR falls (the first way). This is mainly to implement the regulation requirements of the real estate market. In the case that the liquidity is reasonable and sufficient, and the market interest rate is expected to go down, we will adhere to the positioning of "housing and not speculating" and will not send a wrong signal to the real estate market. At the same time, it will also help to control the leverage ratio of the rapidly rising residential sector.
As for the pricing benchmark conversion of other stock loans, the central bank has made it clear that the specific conversion terms will be determined by both borrowers and lenders through consultation in accordance with the principle of marketization. "It is expected that after the initial conversion, the interest rate implementation level of existing loans will be basically the same as before the conversion, which will help promote the smooth conversion and protect the interests of both borrowers and lenders. In order to better serve the real economy, monetary policy will maintain a steady tone and intensify counter-cyclical adjustment. LPR will still have some downside in the future. " Dong Ximiao said.
In addition, Dong Ximiao pointed out that it may be a common way for borrowers to negotiate with banks on an equal footing and adopt LPR as the pricing benchmark, which is relatively beneficial to borrowers. Through this market-oriented way, it will help to reduce the financing cost of the real economy and better serve the steady growth and promote employment. Even if the borrower and the bank negotiate to convert to a fixed interest rate, the existing LPR with the same term may still be an important reference for the implementation level of the fixed interest rate. At the same time, it also embodies the principle of interest rate marketization, that is, matters related to interest rate pricing are determined by both borrowers and lenders through consultation.
Yang Kewei, deputy general manager of Ke Rui Research Center, pointed out that the policy itself is neutral, taking into account the interests of both parties of existing mortgage loans, and stipulating that the interest rate of existing commercial personal housing loans will remain unchanged during the conversion (plus points can be negative), which will not lead to an increase in the interest rate of buyers, which will be the normal state of future mortgage interest rates.
Judging from the effect after the conversion, Jaco pointed out that the current interest rate has a strong downward momentum under the background of relaxed liquidity. Therefore, switching to LPR mode will benefit buyers in the short and medium term, but in the long run, LPR itself is more market-oriented, so the overall mortgage interest rate will be closer to the market level.
You can choose two options, which the industry says will not stimulate the expectations.
The reporter noted that after this adjustment, there are two options for buyers to choose from. One is to add a point (which can be negative) to the pricing benchmark to form LPR, and the value of this point is fixed during the remaining period of the contract, similar to the current mortgage interest rate scheme; One is fixed interest rate. However, it should be noted that only one of them can be selected, and the choice opportunity is only once, and it cannot be changed in the future.
So, what is the impact on ordinary users? Yuan, vice president of Zhuge housing search, pointed out that for users, the fixed interest rate is determined for a long time. On the one hand, they can't enjoy the dividend of falling interest rates, on the other hand, they can avoid the cost increase when interest rates go up. The first way to add LPR to the pricing benchmark is to go with the market for users, and they can enjoy the reduction of repayment amount brought by the downward interest rate, but similarly, the repayment amount will increase when the interest rate goes up. As far as the current interest rate market environment is concerned, the probability of LPR going down is greater. Choosing LPR as the pricing benchmark may be a safer and more mainstream scheme.
Yuan pointed out that if it is converted into a bonus plan based on the benchmark, the bonus will be determined by the difference between the current user's real mortgage interest rate and 201February 9 (4.8% for more than five years), which cannot be changed after it is determined. That is to say, if the current mortgage interest rate is higher than the benchmark interest rate 1. 1%, the converted bonus will be 0.59%, and the converted mortgage interest rate of the user will become the current LPR+0.59%, which is the bonus actually implemented by the user within the validity period of the future mortgage contract.
"If you choose to convert to a fixed interest rate, the converted commercial loan interest rate should be consistent with the current interest rate level. The conversion time is from March 1 to August 3 1 in 2020, but the actual execution time starts from 202 1. In other words, the mortgage actually implemented by users in 2020 will be repaid according to the mortgage of 20 19 and the current repayment agreement. Even if LPR declines in 2020, users can only enjoy the dividend of interest rate decline from 202 1. " Yuan said to:
Yuan concluded that the central bank's plan solved the problem of pricing conversion of stock mortgage interest rate at one time, and also allowed stock mortgage users to enjoy the dividend of interest rate decline, while maintaining the stability of mortgage interest rate and not stimulating market expectations.
Yan Yuejin, research director of the think tank center of Yiju Research Institute, gave an example to the reporter. If the property buyer Xiao Zhang originally bought a house, the implementation is "central bank benchmark interest rate ×( 1+ floating ratio)" 10%, which is calculated to be 4.9 %× (1+10%) = 5.39%. This means that before and after the reform, the interest rate remained stable, but the pricing formula changed.
However, Yan Yuejin reminded that there are two points to pay attention to: First, the LPR will change every month, but the LPR actually faced by buyers will change every year or every 30 years. This can be discussed with the bank and it is recommended to adjust it once a year; Second, once the basis point is agreed, it will remain unchanged. In fact, it is similar to the previous concept of bank discount. In the past, once the discount was negotiated, the 30-year contract remained unchanged.
Zhang Hongwei, director of Tongce Consulting Research Center, said that in the long run, the whole market will enter the interest rate reduction channel in the next three to five years, but in the short term, only the LPR interest rate will be fine-tuned, which has little impact on the mortgage interest rate of ordinary people. However, the situation in different cities is different. In first-tier cities or strong second-tier cities, from the perspective of structural proportion, whether it is the number of transactions or the transaction area, the demand for improvement or replacement improvement is dominant.
Based on this, Zhang Hongwei pointed out that from the perspective of first-tier and strong second-tier cities, since most individual housing loans are two sets of improved housing, structurally, the average interest rate of housing loans in a single city, or the average interest rate immediately converted into LPR, should be on the rise. However, this growth is more caused by structural factors than the increase of interest rate itself.
Source: Beijing News