The interest rate of individual housing loans in China fluctuates around the benchmark lending rate of the central bank. According to the big data survey, the average interest rates of the first home loan and the second home loan in August were 5.47% and 5.78%, respectively, which were 57 and 88 basis points higher than the benchmark interest rate.
The interest rate of newly issued commercial personal housing loans consists of three parts: LPR (calculated according to the quoted interest rate in the loan market published by the bank), local lower limit (determined in time by the self-discipline mechanism of the branches of the People's Bank of China to guide the pricing of interest rates in the provincial market) and bank quota. Previously, the People's Bank of China made it clear that the interest rate of the first batch of newly issued individual housing loans in China should not be lower than the LPR in the same period (the 5-year interest rate of LPR on September 20 was 4.85%); The interest rate of two sets of personal housing loans shall not be lower than the LPR plus 60 basis points in the same period (calculated at the interest rate of LPR for more than 5 years on September 20).
In this "interest rate integration" reform, the mortgage interest rate has changed from the benchmark interest rate to the benchmark LPR, and the benchmark interest rate has also changed, but the interest rate level cannot be reduced. Judging from the feedback of LPR national mortgage interest rate, the interest rate has not changed much and will remain stable. The interest rates of first-and second-tier mortgages were only raised by 0.26 percentage points and 0.27 percentage points respectively, and the interest rates of first-home LPR mortgages in four first-tier cities were 5.23%.
It can be seen that after the implementation of the new policy, compared with before the reform, the interest expenses of families applying for individual housing loans are basically unaffected.