According to the requirements of the central bank, personal mortgage can be converted into lpr pricing or fixed interest rate from March/KLOC-0 to the end of August. However, recently, some banks said that if a qualified personal mortgage is not converted, it will be converted to LPR pricing. What does that mean?

I. Unified conversion to LPR pricing

Individual housing loans will be converted into LPR pricing in a unified way, which means that banks will convert the pricing benchmark of individual housing loans with floating interest rates that meet the conversion conditions into LPR in batches from August 25th.

In other words, before August 24, fixed or lpr borrowers are determined by their own operations. Those who have not made a choice will be converted into lpr in batches on August 25th. If the borrower has any objection, it will switch back to the fixed interest rate through mobile banking before August 3 1.

Second, what is the pricing benchmark?

Floating rate loans generally need to refer to a pricing benchmark and adjust their execution interest rate regularly. Previously, the interest rate of floating rate loans was mostly expressed as? Benchmark loan interest rate? Multiplication? (For example, the multiple of 30% discount is 0.7, and the multiple of 1. 1 is 1), in which the benchmark loan interest rate is the pricing benchmark. After conversion to reference LPR pricing, the expression of interest rate will become? LPR？ Spread? , where LPR is the pricing benchmark.

Third, why should we convert the stock floating rate loan pricing benchmark into LPR?

At present, LPR has been used as the pricing benchmark for most new loans, but the pricing benchmark for existing floating rate loans is still mainly the loan benchmark interest rate. Since June 20 15 and 10, the benchmark interest rate of the loan has remained unchanged. Compared with the benchmark loan interest rate, LPR has a higher degree of marketization, which can reflect the changes of market interest rate in time, and has dropped several times since August 2065438+2009. In order to protect the rights and interests of both borrowers and borrowers, especially to enable borrowers to enjoy the benefits brought about by the downward interest rate, the People's Bank of China has made it clear that from March 2020, the conversion of the pricing benchmark of existing floating interest rate loans will be promoted from 1.

Attention? Unified conversion of personal mortgage to LPR pricing? Not mandatory, mainly for users who have not made a choice. By August 25th, if you have no choice, you will default to LPR. There are also changes: even if you don't make a choice, the bank will choose XX by default. You also have a chance to change it before 65438+February 3 1. But only once.