What does the central bank LPR interest rate mean?
LPR refers to the quoted interest rate in the loan market. It is based on the loan interest rate handled by the bank's best customers, and it is operated in an open way, and then the quotation is formed by adding points. At present, LPR is divided into one-year and five-year periods.
On August 12, China Construction Bank, China Bank, Agricultural Bank, Postal Savings Bank and Industrial and Commercial Bank jointly issued an announcement, and from August 25th, individual housing loans were uniformly adjusted to the LPR pricing method.
LPR (loan market quotation) is quoted on a monthly basis, and the quotation time is the 20th of each month. In case of holidays, it will be postponed. After the announcement at 9: 30 on the 20th, the public can make inquiries at the People's Bank of China official website or the National Interbank Funding Center.
Although LPR is published once a month, for buyers, they can negotiate with the loan bank to adjust the mortgage interest rate according to LPR. The shortest time period is 1 year, and the longest is the loan contract period. If the mortgage is calculated according to LPR in 1 year, the loan interest rate will remain unchanged this year, and will be adjusted again according to the LPR at that time one year later. Because LPR changes every month, lenders can decide the adjustment period according to their repayment ability, LPR interest rate and other factors.
Although the quoted interest rate in the loan market is transparent, buyers will still pay a lot of interest because of the large loan amount and long time; In addition, the mortgage interest rate is based on LPR, and the final interest rate is determined according to the local market situation, which is usually about 0.6% higher than LPR, and the repayment interest is still high. Approved mortgage loans must be repaid in accordance with bank regulations.