Lpr refers to the best lending rate, while mortgage lpr refers to applying the best lending rate to mortgage loans. Banks use lpr as the benchmark for mortgage pricing, and then freely float according to the cost of capital, customer's credit premium and term risk premium on the basis of lpr.
It is reported that from October 8, 20 19 19, the central bank will adjust the interest rate of commercial personal housing loans, instead of floating according to the benchmark interest rate of central bank loans, it will adopt lpr as the fixed interest rate standard.
Second, which is cost-effective between mortgage LPR and fixed interest rate?
1, original interest rate setting method
Loan pricing = official benchmark interest rate *( 1+ floating multiple), that is, major banks float according to the benchmark interest rate, and such pricing is not directly linked to the market-oriented interest rate.
2. The interest rate setting method after the New Deal.
LPR= average (18 banks' "MLF+ points")
Loan pricing =LPR*( 1+ fluctuation multiple)
18 The bank quoted to the National Interbank Funding Center by adding the medium-term lending convenience rate (MLF).
Therefore, when setting the loan interest rate, banks can freely float on the basis of LPR according to the cost of capital, the credit premium of customers and the risk premium of term.
After the implementation of lpr interest rate, mortgage may increase or decrease. It depends on the adjustment range of lpr interest rate.
For example:
1. Those who enjoyed preferential mortgage interest rate before: it is lower than the original after being converted at the current interest rate!
Xiao Wang bought a house five years ago, when the mortgage interest rate was 20%, which was the benchmark interest rate of 3.92%(4.9%×0.8). The five-year LPR interest rate issued on June 20 19 is 4.8%. For example, Xiao Wang and Bank decided to change the pricing benchmark on July 3, 2020 1 day, and the repricing period was still 1 year, and the annual repricing date was still1year. The addition range is -0.88%(3.92%-4.8%).
If the mortgage interest rate in June 5438+February this year maintains the latest interest rate in July, that is, the LPR for more than five years is 4.65%, then the interest rate plus LPR is 4.65-0.88=3.77, which is 0. 15 lower than the original 3.92.
2. Previously, the mortgage interest rate rose: after the current interest rate was converted, the mortgage interest rate fell!
The house that Xiao Li bought on 20 18 is higher than the benchmark interest rate 10% according to the interest rate of the first home loan, that is, 5.39%. If Xiao B and the bank decide to switch the pricing benchmark on July 3, 2020, and the repricing period is still 1 year, the repricing date will still be 1 day per year. The addition range is 0.59%(5.39%-4.8%).
If the mortgage interest rate in June 5438+February this year maintains the latest interest rate in July, that is, the LPR for more than five years is 4.65%, then the interest rate plus LPR is 4.65+0.59=5.24, which is 0. 15 lower than the original 5.39.
So according to the current interest rate, of course, it is more cost-effective! Of course, the above example is calculated according to the current LPR in July. Judging from the trend of LPR interest rate in recent months, the overall trend is still obviously downward. In the long run, it is impossible to judge whether LPR will rise or fall in the future, but many people in the industry believe that the probability of LPR rising is not great, and the future interest rate trend basically follows the market.
3. Who needs to convert to LPR?
1. Floating rate loans issued before 20201,or loans that have signed loan contracts but have not been issued with reference to the benchmark loan interest rate.
2. The interest rate is determined by the fluctuation of the benchmark interest rate, such as "benchmark interest rate rises 10%" or "benchmark interest rate is 20% off".
3. For example, the floating interest rate, June 65438+1 October1should be adjusted.
However, there are a few exceptions:
1, provident fund, individual housing loan and part of the combined loan of provident fund;
2. Fixed interest rate loans;
3. Personal housing loans due before the end of 2020;
In other words, in addition to the above three situations, the rest of the buyers with personal housing loans will be affected.
4. When did you start to convert to LPR?
According to the requirements of the central bank, the conversion work should start from 1 in March 2020, and in principle should be completed before 3 1 in August 2020. During this period, the borrower can agree with the bank on any processing time.
5. Can LPR conversion not be performed?
Of course. All existing mortgages can be converted into "LPR points" or fixed interest rates.
Take ICBC as an example: if the borrower does not handle LPR conversion, the bank will fully respect the individual's wishes and maintain the original pricing method. (Banks may be different. Borrowers are advised to consult the corresponding banks. )
However, it should be emphasized that no matter which kind of property buyers choose, there is only one choice, which cannot be changed later.
Sixth, how to carry out LPR conversion?
At present, CCB, ICBC, BOC, ABC, Bank of Communications, Postal Savings Bank, etc. It has been announced that the conversion work will start on March 1 day. Affected by the epidemic, many banks indicated that they would not support offline handling for the time being, and would gradually open offline acceptance channels according to the progress of epidemic prevention and control. At present, borrowers can handle it through mobile banking, online banking and other online channels. Let's take mobile banking as an example to teach you how to operate:
1. Log in to mobile banking and click "Loan"-"Convert LPR interest rate" on the home page;
2. After entering the loan page with interest rate to be converted, select "Convert to floating interest rate" or "Convert to fixed interest rate" according to your needs;
3. Select the repricing date, which is divided into 65438+ 10/0 1 and the month of the loan date. The repricing period of all loans is 12 months, and the next pricing time will be displayed at the bottom of the selection.
4. Sign the contract and complete the safety verification. Click Supplementary Contract to enter the supplementary contract preview page. After checking "I have read and agreed to the supplementary contract", click "Sign the supplementary contract" to enter the risk warning page. Click OK, enter the transaction password and SMS verification code, and complete the signature.
Step 5 check the contract. If the contract is signed successfully, it will automatically jump to the "My Loan" page. After clicking the View Contract button, you can download and view the contract.
Seven, industry experts' views on LPR conversion
Yuan, vice president of Zhuge housing search, said that for users, the fixed interest rate is determined for a long time, and they can't enjoy the dividend of falling interest rates, but they can also avoid the cost increase when interest rates go up. The 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 the repayment amount will also 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 high, so choosing LPR as the pricing benchmark may be a more secure mainstream scheme.
Zou, head of the housing big data project of the Institute of Finance and Economics of China Academy of Social Sciences, said that now that LPR has been anchored, LPR has a long-term downward trend, so the existing mortgage interest rate has also opened a long-term downward channel, which is conducive to reducing the housing burden and the repayment pressure is expected to be reduced.
Yan Yuejin, think tank center of Yiju Research Institute, said that this adjustment is mainly to adjust the interest rate calculation method, that is, from "central bank benchmark interest rate ×( 1+ floating ratio)" to (LPR base interest rate+basis point). Follow-up interest rates have room for downward adjustment, so mortgage borrowers don't have to worry about the burden of increasing monthly payments, and they don't have to repay loans in advance.