That sounds a little awkward. Simply put, our previous loan contract was priced in the form of benchmark interest rate+floating (or floating), and now it must be converted into LPR+ basis point (or fixed interest rate).
Of course, what is relevant to most people is mortgage.
The central bank said in August that the existing personal housing loan interest rate is still implemented according to the original contract. Why has it changed? After switching to the new pricing method, is the mortgage more or less? The central bank gave the answer.
In particular, this change does not include provident fund personal housing loans. After all, the interest rate of provident fund personal housing loans is much lower than that of commercial loans.
The central bank made a major adjustment: converting the pricing benchmark of floating rate loans into LPR.
On August 7, 20 19, the central bank issued an announcement to reform and improve the formation mechanism of LPR in the loan market.
The central bank said that at present, nearly 90% of new loans have been priced with reference to LPR, but the stock floating rate loans are still priced on the basis of the loan benchmark interest rate, which can not reflect the changes in market interest rates in time, which is not conducive to protecting the rights and interests of both borrowers and lenders. In order to further deepen the reform of LPR, the People's Bank of China issued Announcement No.30 [20 19] to promote the smooth conversion of the current pricing benchmark of floating rate loans.
According to the announcement of the central bank, the floating interest rate loan in stock refers to the floating interest rate loan (excluding provident fund personal housing loan) that has been issued by financial institutions before June 65438+1 October12020, but has been signed but not issued with reference to the benchmark interest rate of the loan. Since June 5438+1 October1in 2020, financial institutions are not allowed to sign floating interest rate loan contracts with reference to the benchmark loan interest rate.
What are the principles for the conversion of the pricing benchmark of floating rate loans?
First, the borrower can negotiate with the bank to determine whether to convert the pricing benchmark into LPR or fixed interest rate. The borrower has only one choice, and it cannot be converted again after conversion. The floating interest rate loan of inventory in the last repricing cycle shall not be converted.
Second, the conversion work started at 1 in March 2020, and should be completed before 3 1 in August 2020 in principle.
Third, the interest rate level of the convertible loan is determined by both parties through consultation. Among them, in order to implement the regulation requirements of the real estate market, the interest rate level of commercial personal housing loans should remain unchanged at the time of conversion.
According to the central bank, the pricing benchmark of floating interest rate loans is converted into LPR, and the added value is determined by both borrowers and lenders through consultation, except for commercial personal housing loans. The value-added amount of commercial individual housing loans should be equal to the difference between the latest interest rate level of the original contract and the corresponding term issued by LPR in February 2065438+0.9. From the conversion point to the first re-pricing date after that point (excluding), the execution interest rate level shall be equal to the latest execution interest rate level of the original contract, that is, the sum of the corresponding term LPR of 20 19 years and the value added. Thereafter, from the first repricing date, on each interest rate repricing date, the interest rate level will be recalculated and determined according to the corresponding period LPR and added value of the latest month.
Financial institutions can renegotiate the repricing period and repricing date when negotiating pricing benchmark conversion terms with customers. The shortest repricing period for commercial personal housing loans is one year.
If the stock floating interest rate loan is converted into a fixed interest rate, the converted interest rate level shall be determined by the borrower and the borrower through consultation, and the converted interest rate level of commercial personal housing loan shall be equal to the latest execution interest rate level of the original contract.
In addition to commercial personal housing loans, other floating interest rate loans, including but not limited to corporate loans and personal consumption loans, can be converted into fixed interest rates through negotiation between borrowers and borrowers according to the principle of marketization, including the term variety, added value, repricing term and repricing date of LPR.
The new mortgage interest rate is calculated like this!
So, how to calculate the new mortgage interest rate? Will the interest rate change after the conversion?
The central bank said that if the pricing benchmark is converted into LPR, the term variety of LPR will be determined according to the loan term of the original contract, and will not be adjusted during the remaining term of the contract after determination; The added value is the difference between the latest execution interest rate of the original contract and the LPR of June 20 19, 12 (it can be negative), and it will be fixed during the remaining term of the contract; The interest rate level remains unchanged during the conversion; Lenders and borrowers can re-agree the re-pricing period and date, and the shortest re-pricing period is one year.
When the same commercial individual housing loan is converted at any time from March to August, 2020, the value-added part is determined according to the LPR of February 20 19 and the original interest rate level. Value-added is not affected by the conversion time, and banks and customers can handle it in a reasonable way. At present, the repricing period of most existing commercial personal housing loans is 1 year, and the repricing date is 1 day every year.
Take this as an example. If the original contract term of commercial personal housing loan is 20 years, and the remaining term is 8 years, the interest rate agreed in the original contract is that the benchmark interest rate of loans for more than 5 years will rise 10%, and the current interest rate is 4.9% × (1+10%) = 5.39%. 20 19 and 12 issued an LPR of more than 5 years, which was 4.8%. If the borrower and lender decide to change the pricing benchmark on March 30, 2020, the re-pricing period is still 1 year and the re-pricing date is still 1 day, then the increase rate should be 0.59 percentage points (5.39%-4.8%=0.59%). From March 30th to February 30th, 2020, 65438+3 1, the interest rate is still 5.39%(4.8%+0.59%). On the first re-pricing date thereafter, that is, 202 1, 1, according to the re-agreed re-pricing rules, the interest rate will be adjusted to 65438+LPR+0.59% announced in February 2020, and so on.
To put it simply, in the first pricing cycle (generally 1 year), the newly implemented housing loan interest rate is the same as the currently implemented interest rate, so the basis point value (LPR+ basis point) in the new interest rate is the difference between the current interest rate and LPR, and once the basis point is determined, it will not change thereafter.
In addition, this change is also a "great pressure" for banks. The central bank said that since the issuance of the notice, banks should formulate a work plan for the conversion of the pricing benchmark of commercial personal housing loans as soon as possible, including system support and personnel training. At the same time, they should inform customers through various channels (including announcements on official websites and outlets, short messages, emails, mobile banking and telephone notifications, etc.). ) and with the consent of both parties, change the original contract terms in the simplest and easiest way possible.
The reduction of LPR is not to stimulate the property market.
Although the interest rate of the first mortgage cycle remains unchanged, the change of LPR will have an impact on your mortgage repayment.
The mortgage interest rate is usually equivalent to a five-year LPR. According to the data of China Foreign Exchange Trading Center, the price of LPR was 4.80% five years ago.
The last change of LPR quotation was on 1 65438+1October 20th:1year variety decreased from 4.20% to 4.15%; Five-year-old varieties decreased from 4.85% to 4.80%.
Zhang Dawei, chief analyst of Zhongyuan Real Estate, analyzed at that time that the reduction of five-year LPR means that the average monthly supply will be reduced by 30 yuan and the total monthly supply will be reduced by 1 10,000 yuan in 30 years.
It is worth noting that china securities journal reported that after the reform, LPR has gradually become the pricing benchmark for new loans. LPR is linked to MLF interest rate, and the change of the latter has an important impact on LPR, which in turn has an impact on the credit market interest rate. Faced with the successive downward adjustment of MLF interest rate and the central bank's reverse repo rate, some researchers believe that the interest rate reduction cycle may have begun.
CICC's fixed income research team pointed out that historically, the reduction of the central bank's reverse repo rate usually does not end at one time, and a new round of interest rate reduction cycle may have begun.
Zhang Jiqiang, Huatai Securities, said that MLF interest rate has room for further slight downward adjustment to guide LPR to continue its downward trend. However, related policy operations still need to prevent "inflation expectation diffusion" and maintain "normal monetary policy".
However, the main purpose of reducing LPR is to guide the real economy to reduce interest rates and capital costs in the future, not to stimulate the real estate market.
As early as August, the central bank said that after the conversion of the pricing benchmark, the interest rate of the first individual housing loan newly issued nationwide should not be lower than the $ term； of the corresponding period; The interest rate of two sets of personal housing loans shall not be lower than LPR plus 60 basis points in the same period.
Content source: National Business Daily Comprehensive Central Bank website, every APP