It increased by 59 points and remained unchanged at the original 5.24%.

The current loan interest rate method is calculated based on the "Loan Prime Rate (LPR) plus (or minus) floating points".

According to the LPR of more than five years from April 2020 to now is 4.65%, the interest rate after adding 59 basis points = LPR4.65% + 0.59% = 5.24%.

1 , What does LPR mean?

LPR, the loan market quoted interest rate (formerly known as: loan base interest rate), was officially released in October 2013.

Many people may not have heard of the loan base interest rate, but anyone who has bought a house should have heard the term "loan base interest rate". When applying for a mortgage, the bank will approve the amount for you based on local conditions and charge you interest. The amount of interest charged is related to the mortgage interest rate signed between you and the bank, and the mortgage interest rate rises/falls based on the loan base interest rate.

The basic loan interest rate and the basic loan interest rate look very similar. Is there any relationship between the two?

The loan benchmark interest rate is a guiding interest rate for loans set by the central bank to commercial banks. At present, we adopt the latest benchmark interest rate of the Central Bank on October 24, 2015: within 1 year (including 1 year), the annual interest rate is 4.35%; from 1 year to 5 years (including 5 years), the annual interest rate is 4.75%; for more than 5 years, the annual interest rate is 4.75% 4.90%.

LPR is quoted by each quoting bank based on the open market operating interest rate (mainly referring to the medium-term lending facility rate) plus points, and is calculated by the National Interbank Lending Center to provide pricing reference for bank loans. To put it simply, the calculation method of LPR is generated by the same quotation from 18 banks. The calculation method is to remove the highest price and the lowest price, and finally obtain the arithmetic average.

The launch of LPR is to gradually replace the loan benchmark interest rate.

2. After the implementation of LRP, how to calculate the mortgage interest rate

Before the implementation of LPR:

The deposit and loan interest rates stipulated by the central bank are the benchmark interest rates. The current benchmark interest rate is 4.9%.

The relationship between the base interest rate and the mortgage interest rate:

The interest rate for a second home is not less than 10% of the base interest rate.

The final mortgage interest rate = official loan base interest rate * (1 + floating/floating multiple).

After LPR is executed:

LPR is the loan market quoted interest rate. LPR is generated from the same quotation from 18 banks. The calculation method is to remove the highest price and the lowest price, and finally obtain the arithmetic average. Quotes are recalculated on the 20th of every month.

The relationship between LPR and mortgage interest rates:

1. First home: not lower than LPR, which is 4.80% according to current standards;

2. Second home , LPR+0.6%, which is 5.40% by current standards.

After the reform of the LPR mechanism, the final mortgage interest rate = LPR* (1 + floating/lowering multiple).

3. Will house prices rise after the implementation of LRP?

After the mortgage interest rate was linked to the LPR, many people believed that the LPR was coming and house prices were going to rise. But is it really so?

In fact, LPR interest rates are related to market supply and demand, which does not mean that interest rates will definitely rise. On the contrary, with market-based pricing, interest rates may be lowered or raised.