Many people borrow money to buy a house, but what they buy is actually a rough house. If you want to live in a rough house normally, you naturally have to decorate it, but it also costs a lot of money, so you will consider a loan, which is what we call a decoration loan. So, is the decoration loan interest high or the mortgage interest high? Many people will consider it more. Let's take a look.

Is the renovation loan interest high or the mortgage interest high?

First, compare the loan interest rates.

1, benchmark interest rate for commercial loans

/kloc-LPR quoted interest rate of 0/year and above

According to the data released on June 20th, the interest rate of provident fund loans with a term of 1 year and above.

By simply comparing the years of 1-5, we can see that the interest rate of provident fund loans is the lowest. Since the lowest interest rate of decoration loans will not be lower than the benchmark interest rate of commercial loans or the quoted interest rate of LPR in the same period, and provident fund loans are not supported, if mortgage loans are applied provident funds, the interest rate of decoration loans is higher than that of mortgage loans.

Second, compare loan types.

1 mortgage loan

Generally, only the first set of housing loans, the second set of housing loans and commercial housing loans are distinguished. Take China Industrial and Commercial Bank as an example:

The interest rate of the first individual housing loan is not lower than the LPR quotation rate for the same period, that is, not less than 4.45% for five years or more;

The interest rate of two sets of personal housing loans is not lower than the LPR quotation rate plus 60 basis points, that is, not less than 4.45%+0.6% = 5.05% for five years and above;

The interest rate of individual commercial housing loan is not lower than the LPR quotation rate plus 60 basis points in the same period, that is, it is not lower than 4.45%+0.6%=5.05% for more than five years.

2. Decoration loan

If you apply together with the housing loan, the loan type and the corresponding interest rate are consistent with the mortgage loan;

If it is a personal consumption credit loan product, such as China Industrial and Commercial Bank's "Rong E Loan", the loan funds can be used for home decoration without mortgage and pure credit application. The longest loan period is 3 years, and the lowest loan interest rate is LPR+ monthly renewal.

A simple comparison shows that if the mortgage is the first home, the renovation loan interest is greater than or equal to the mortgage interest, while if the mortgage is the second suite or commercial house, the renovation loan interest can be less than or equal to the mortgage interest. After all, LPR only increased by more than 60 basis points in the same period, which is related to "high decoration loan interest or high mortgage loan interest". I hope I can help you.