What is the difference between the two options?

If you choose to link to LPR, you will face interest rate fluctuations in the future

Choose a fixed interest rate, which means that the mortgage interest rate will remain unchanged during the remaining term of the contract. The reporter consulted several banks and learned that in order to smooth the transition, the previous interest rate level will be maintained during the conversion. Assume that the user originally enjoyed a 10% discount and the interest rate is: base interest rate 4.9×0.9=4.41. The new contract can also be negotiated to 4.41.

If you choose to link to LPR, you will face interest rate fluctuations in the future. The bank said that the interest rate at the time of conversion remains unchanged, but what has changed is the calculation logic behind it. Still taking the existing loan interest rate of 4.41 as an example, the interest rate previously obtained by users depended on whether there was a change in the central bank's benchmark interest rate. After conversion, depending on the LPR quotation, the calculation logic is changed to LPR (-) fixed spread. The fixed spread in this example is 0.39, which is based on the central bank's December LPR quotation of 4.8 - the current interest rate of 4.41.

No matter whether LPR rises or falls in the future, the interest rate users receive will be LPR-0.39. If the current interest rate is higher than the December LPR quote of 4.8, add a point upward.