Original title: The minimum interest rate for first home loans in Shanghai is 4.65%, which shall not be lower than the LPR of the corresponding period minus 20 basis points

CSI News (Reporter

Gao Gaifang) China A reporter from the Securities News learned from someone close to the central bank on October 8 that the current mortgage interest rate in Shanghai is initially 20 basis points minus the LPR for the first home, and the interest rate for the second home is no less than the corresponding LPR. Term LPR plus 60 basis points.

Relevant sources explained that personal housing loan interest rates have a great impact on market supply and demand and are also an important part of the LPR pricing reform. However, the original equilibrium of the real estate market will not be affected by the LPR pricing benchmark reform. The reason why the first home purchase in Shanghai is reduced by 20 basis points from the LPR is mainly because before the reform, the lowest first home purchase in Shanghai was about 4.6% after a 15% discount on the loan benchmark interest rate. If the new pricing mechanism is adopted, it will be equivalent to an increase of 20 basis points for the first home in Shanghai, which will have a relatively large impact on the market. This measure was taken based on the overall situation of "stable quantity and stable price" in Shanghai's real estate market.

Based on the LPR of 4.85% with a term of more than 5 years announced on September 20, the mortgage interest rate in Shanghai is the lowest at 4.65% for the first home and 5.45% for the second home. However, Shanghai had previously implemented a maximum 10% discount on first-home loan interest rates from the benchmark interest rate of 4.85%, and a 10% increase in second-home loan interest rates, namely 4.61% and 5.39% respectively.