Why is the mortgage interest rate so high?
1. The borrower's comprehensive qualification is not good.
The higher the loan risk, the higher the borrower's loan interest rate.
If the borrower's repayment ability, credit status and monthly income all meet the requirements of the bank's loan application, then the bank will inevitably worry that the borrower's loans overdue risk is relatively high. In high-risk loans, banks will consider raising the loan interest rate in order to reduce risks.
2. Banks need to make profits.
The main business of banks is deposits and loans. People will earn interest when they deposit in the bank, and the bank needs to be responsible for earning this interest. One of the profit channels is the loan.
For banks, whether the number of people buying houses has increased or not, appropriately raising the loan interest rate can effectively help their own income.
3. Comply with relevant regulations.
The fluctuation of mortgage interest rate also depends on market conditions. If the country has any regulatory needs, the LPR interest rate will fluctuate, and the bank's loan interest rate will naturally change with the LPR interest rate.
4. The bank line is tight.
In the past, banks would put a lot of loan funds on mortgage business, with excellent assets and stable income. However, affected by the "two red lines", the funds that banks can invest in mortgage business are limited. The bank can put as much as it wants. Different banks have upper limits on the amount that can be used for mortgage loans.
In order to screen better customers and make the mortgage business run stably, banks will choose to raise the mortgage interest rate and raise the threshold for applying for loans.
5. Inflation
Because the house is a large loan, the longest installment time is 30 years. In such a long time, the house is likely to become less valuable. If banks want to ensure profitability, it is a natural choice for mortgage interest to exceed the principal.
How to get a lower mortgage interest rate
1. Choose the loan method that suits you. At present, there are many kinds of mortgage loan products provided by commercial banks, including average capital, equal principal and interest, combined loans and so on. Property buyers can choose their own loan method according to their repayment ability and financial situation.
2. Improve your credit rating. Buyers can improve their credit rating by timely repayment and early repayment, so as to obtain lower mortgage interest rates.
The value of collateral is very high. Buyers can choose lots with high housing value, or choose high-quality houses with good orientation and high floors to improve the value of collateral and obtain lower mortgage interest rates.
In short, although the current mortgage interest rate is relatively high, you can still get a lower mortgage interest rate if you are familiar with the loan method and the choice of banks.