If your personal housing loan is a commercial loan, which was paid before June 65438+ 10/in 2020, or a contract has been signed but not paid, which belongs to a floating interest rate and is priced with reference to the loan benchmark interest rate, then you are faced with the following options-?
Convert the loan pricing benchmark into LPR plus or minus points, or into a fixed interest rate? ?
What's the difference between them? Which is more cost-effective? How to operate specifically? What problems should we pay attention to? ?
First of all, it should be reminded that although the above-mentioned conversion work officially started on March 1 day, it will continue until August 3 1 day, and the borrower still has enough time to understand the relevant situation and make appropriate choices based on full investigation and combined with his own needs. ?
Has the "pricing benchmark" changed?
When it comes to LPR, many people say that they are "confused" and don't understand the logic and principle of "LPR to mortgage". In fact, if we grasp the concept of "pricing benchmark", we can "suddenly understand" this transformation. ?
When people apply for a mortgage, they are very concerned about whether there is a "discount"-that is, whether they can discount the benchmark interest rate. For example, the benchmark interest rate is 4.9%. After a 10% discount, the real interest rate is 4.4 1%, of which the benchmark interest rate is the "pricing benchmark" of the mortgage. ?
The core of this transformation is that the "pricing benchmark" has changed, from the previous pricing based on "benchmark interest rate" to the reference "LPR" pricing. ?
What is LPR? Its full name is "loan market quotation". Simply put, it is the loan market quotation formed by the People's Bank of China's comprehensive quotation of 18 representative commercial banks. Published on the 20th of each month (postponed in case of holidays), currently including 1 year and more than 5 years. ?
Then, why change the "pricing benchmark" of mortgage from the benchmark interest rate to LPR? "Compared with the benchmark interest rate, LPR is more market-oriented and can timely reflect changes in market interest rates." The relevant person in charge of the central bank said that in order to deepen the interest rate marketization reform and further promote the use of LPR, the central bank has officially issued an announcement requesting the implementation of the benchmark conversion of floating rate loans. ?
The above-mentioned person in charge said that at present, most of the new loans have been based on LPR, but the pricing benchmark of existing floating rate loans is still mainly the loan benchmark interest rate, not LPR. Since June 20 15, 10, the benchmark loan interest rate has remained unchanged, but since August 20 19, the LPR has gone down several times. ?
"Therefore, in order to protect the rights and interests of both borrowers and borrowers, the central bank has made it clear that from March 1 day, 2020, it will promote the conversion of the pricing benchmark of existing floating rate loans." The person in charge said. ?
It is worth noting that this conversion work is not limited to mortgages, but also covers corporate loans and personal consumption loans. As far as mortgage is concerned, it only includes commercial personal housing loans and commercial loans in portfolio loans, and does not involve provident fund personal housing loans; At the same time, fixed-rate loans, personal housing loans due before the end of 2020, and floating-rate loans with reference to LPR do not need to be converted. ?
LPR or fixed interest rate? ?
It is worth noting that LPR is not the only option for conversion, and borrowers can also convert their mortgages into fixed interest rates. Then the question is coming. What's the difference between the two? Which is more cost-effective? ?
Many insiders said that the two conversion methods have their own advantages, and the specific choice depends on the borrower's own judgment, especially on the future interest rate trend. If you think that LPR will decline in the future, it will be better to refer to LPR pricing instead; If you think LPR may rise in the future, it will be beneficial to switch to a fixed interest rate. ?
"It should be noted that under the pricing method of the benchmark interest rate, it generally floats in proportion, such as the benchmark interest rate rises 10% and falls15%; Under the pricing method of LPR, it fluctuates according to the number of points, such as LPR plus 40 basis points and MINUS 30 basis points. " The relevant person in charge of China Industrial and Commercial Bank Beijing Branch said. ?
He introduced that suppose your current mortgage is 10 years, and the interest rate is 30% off the benchmark interest rate. After conversion to LPR, it is not 30% off the basis of LPR. ?
"Before the conversion, the benchmark loan interest rate was 4.9%, and the actual execution interest rate after 30% discount was 3.43%. After the conversion to LPR, the actual execution interest rate of the loan is still 3.43%, but the interest rate pricing method is converted to LPR as the pricing benchmark. " The person in charge said that after conversion, the loan with a term of 10 was 4.8% with reference to the LPR of more than five years published on February 20th, 20 19. Therefore, the pricing method of this loan is converted into: minus 137 basis points on the basis of LPR over five years, that is, minus 1. ?
If the borrower chooses to switch to "fixed interest rate", the interest rate of his mortgage will be 3.43% during the remaining period of the contract. ?
If the borrower chooses to refer to LPR pricing instead, the mortgage interest rate will be determined according to "LPR-65438+0.37% over 5 years". ?
Then the problem is coming. As we all know, LPR is published once a month on the 20th, and the corresponding real mortgage interest rate will change once a month? ?
The answer is no, there are two issues involved here: "repricing date" and "repricing cycle". The former refers to the interest rate adjustment date agreed by you and the bank, that is, "when to adjust", which is usually 1+0 every year, or the date corresponding to the annual loan issuance date; The latter refers to "how often to adjust", that is, the frequency of adjustment, usually one year. ?
In other words, from the conversion to the first re-pricing date, the mortgage interest rate of the above borrowers is still 3.43%. From the first repricing date, the mortgage interest rate becomes "LPR- 1.37% in the last five years", and so on every repricing date. ?
Multi-channel processing takes effect in real time?
It is not difficult to see that if LPR continues to decline in the future, it will be more cost-effective to convert the mortgage interest rate into reference LPR pricing. At present, from the feedback of many commercial banks, more borrowers expect LPR to decline, and more people choose LPR than those who choose fixed interest rate. ?
It should be noted that according to the deployment of the regulatory authorities, the conversion work should be completed in principle before August 3, 20201. If the borrower needs to convert, it is recommended to negotiate with the corresponding financial institutions before this time node. ?
In addition, if there are * * * borrowers in the loan, all * * * borrowers must agree to the change before the pricing benchmark conversion can be implemented. ?
How to deal with it? Take ICBC as an example. At present, the Bank provides mobile banking, intelligent teller machines, SMS banking and other acceptance channels. "During the epidemic, it is recommended that borrowers handle it through mobile banking. If you really need to go offline, it is recommended to wait until the epidemic is over. " The relevant person in charge of the bank said. ?
From the online channel, the borrower can log in to the mobile banking APP of ICBC, click the path of "Favorite, All, Deposit and Loan, Interest Rate Benchmark Conversion, One-click Conversion" and follow the prompts. ?
"If you are the same borrower in the loan contract and have reserved your mobile phone number in ICBC, you will receive a confirmation message from ICBC 95588 after the main borrower initiates the pricing benchmark conversion. At this time, you can directly reply to the message and complete the confirmation of the change of the pricing benchmark. " The person in charge said that this bank SMS function is expected to go online in mid-April. ?
As for the effective time of the conversion, it is usually "real-time effective". For example, when converting the pricing benchmark in mobile banking, if "LPR Pricing" is displayed in the upper right corner of a contract in the contract list, the conversion is successful. ?
However, if there are * * * borrowers in your loan, all * * * borrowers need to complete the change confirmation before 24 o'clock on the day when the main borrower initiates the change, and the pricing benchmark change will take effect. ?
Accordingly, the bank will send SMS reminders to the mobile phone number reserved by the borrower in the bank after the pricing benchmark changes successfully or fails, and advise the borrower to pay attention to relevant information in time. ?
Finally, it should be reminded that according to the policy requirements of the central bank, after converting the pricing benchmark into LPR, it is not allowed to switch back to pricing at the benchmark interest rate, that is, the pricing benchmark can only be converted once, and the borrower should make a rational choice after careful consideration. ?