However, customers can choose to implement floating interest rates. In this way, if LPR can be changed in the future, as long as it is in a downward trend, when the mortgage repricing date comes, they can calculate the new interest rate according to the new LPR quotation and calculate the designated basis point, which will be implemented in the next cycle, and the new interest rate will naturally decrease. Of course, if the LPR quotation rises later, the calculated new interest rate will naturally rise once the repricing date comes.
In addition, customers can also choose to change the mortgage type from commercial loans to provident fund loans. Central Bank Loan Benchmark Interest Rate for Provident Fund Loans Among the benchmark interest rates for loans announced by the People's Bank of China, the annual interest rate for provident fund loans over five years is only 3.25%, which is significantly lower than that for commercial loans. You know, the quotation of LPR alone reached 4.65% (more than 5 years).
Will the mortgage interest rate fall in 2022?
After China's entry, credit funds in many cities across the country have been loosened, which has led to a decline in mortgage interest rates. The data shows that the mortgage interest rates in popular cities such as Guangzhou, Shenzhen and Nanjing have all dropped. For example, the interest rate of the first home loan in Shenzhen has dropped from 5.85% to 5.65%, and the mortgage interest rate has fully returned to the prefix 5. Moreover, according to the trend, the mortgage interest rate may continue to decline.
Because at the end of last year, the central bank said it would "meet the reasonable demand for credit funds in the real estate market". And in the property market, what demand is more reasonable than just buying a house? Therefore, this means that in the future, the bank's funds will be greatly inclined to those who just need to buy houses. In this case, no matter the mortgage interest rate or the credit line, they will enjoy the benefits they just need.