Guandian Real Estate Network News: The central bank’s announcement shows that starting from March 1 this year, existing mortgage interest rates will be readjusted. Existing floating rate loan customers can have two options: fixed interest rate, LPR (loan market quotation rate) ) adjustment, the conversion work will be completed by the end of August this year.

According to the regulations of the central bank, the meeting factors for convertible loans include: loans that have been issued before January 1, 2020 or loans that have been signed but not issued; reference is the loan benchmark interest rate pricing; floating interest rates. However, provident fund personal housing loans are not included. If it is a commercial loan or provident fund mixed loan, only the commercial loan part will be converted, and the provident fund loan part will be executed according to the original contract.

As for the current conversion options, the market generally believes that choosing the LPR adjustment plan has a greater chance of enjoying interest rate dividends, but if the LPR is raised, it means bearing a greater interest burden.

Guandian Real Estate New Media learned that on August 20, 2019, the first quotation after the reform of the loan market quoted interest rate (LPR) formation mechanism was born. The loan market quoted interest rate (LPR) announced by the National Interbank Lending Center is: 1-year LPR is 4.25%, and 5-year or above LPR is 4.85%.

On September 20 of the same year, LPR ushered in the second quotation after the reform. The loan market quotation rate on that day was: the 1-year LPR dropped to 4.20%, and the 5-year and above varieties quoted 4.85%, remaining unchanged. constant.

On November 20, 2019, the loan prime rate (LPR) announced by the central bank was reduced again. Among them, the 1-year LPR is 4.15%, and the 5-year and above LPR is 4.80%.

On February 20 this year, LPR ushered in its seventh quotation after the reform, and it was lowered for the third time. Among them, the 1-year LPR is 4.05%, and the 5-year and above LPR is 4.75%.