Not only necessary, but very necessary.

According to the regulations of the central bank, from March 1st to August 31st, banks will ask people who used commercial loans to buy houses before this year to "re-sign" their mortgage contracts, and the previous "base loan interest rate" will be "Float up or down" will become "LPR + basis point", and all future mortgages will use the LPR interest rate as the reference benchmark. Whether the mortgage loan will rise or fall, increase or decrease, will depend on the LPR interest rate.

In fact, not only housing loans, but also consumer loans, personal business loans, etc., as long as they were previously linked to the benchmark interest rate, must undergo this conversion.

Replacement of mortgage loans is undoubtedly one of the biggest changes in the property market in 2020.

In the past, when we bought a house, we used the policy interest rate as the benchmark. The policy interest rate was determined by the state and was generally adjusted only once every few years. The current policy loan benchmark interest rate is 4.9%, which has not changed since 2015. Although the mortgage interest rates of major banks have increased from 10% off at the time to 1.2% currently, coupled with the rapid changes in the economic situation in recent years, in order to serve the real economy, deepen the market-oriented reform of interest rates, and improve the efficiency of interest rate transmission, the central bank has quoted loan market quotations since August 2019. Interest rate (LPR) reform, this mortgage interest rate conversion is imminent and is imperative. Therefore, the purpose of the central bank's reform of the LPR model is: first, to carry out market-oriented reform of interest rates. The LPR interest rate, which is updated once a month, is obviously more adaptable to the rapidly changing market changes; second, it is to separate the property market interest rate from the real interest rate to provide the possibility for targeted regulation of the property market. .

To this end, the central bank provides two options: One is to choose a fixed interest rate, which will remain unchanged throughout the mortgage cycle in the next 20 or 30 years. For example, the actual interest rate in 2019 is 5.39%. Choosing a fixed interest rate means that it will be 5.39% in the next 20 years; the second is a floating interest rate that changes every year. The mortgage interest rate can be adjusted once a year. If the latest LPR interest rate drops that year, the mortgage rate will be 5.39%. Interest rates also fell accordingly.

So, should you choose a fixed interest rate or a floating interest rate that changes every year? The answer is obvious, choose whichever method can make the loan cost lower. Because judging from the long-term trend, China's market-based loan interest rate (LPR) has entered a continuous downward channel. Therefore, it is best to choose a floating interest rate that changes every year.

In addition, due to space limitations, the most common problems are summarized as follows:

First, you must choose the "added base point" mode in LPR, and the repricing cycle must be "one year" A change”.

Second, as long as it is a personal loan, you can choose to convert it, so it is suitable for second suites, apartments, shops, and office buildings.

Third, if the property is newly purchased this year, the mortgage is already linked to LPR, and no conversion is required.

Fourth, if it has been less than one year since the mortgage was paid off, you do not need to convert.

Fifth, if there is a loan with *** the same borrower, all *** and the borrower*** need to be confirmed together.

Sixth, you have enjoyed preferential interest rates before, which are lower than the current LPR (4.75%). The cost will not be higher after choosing a floating interest rate. Because the "added base point" may be negative, the added base point of each house is different, and the interest rate discounts in the past will be reflected in the base point.

Seventh, there are two choices for (pricing date): one is January 1 of each year; the other is year to month to day (loan date).

Eighth, there is only one chance to choose. Once chosen, it cannot be changed in the future.

Ninth, this reform does not involve provident fund loans, so it has nothing to do with provident fund.

Buyers need to be reminded that if they choose a floating interest rate, starting from 2021, before repaying, please consult the bank for the monthly repayment amount for this year, or use online banking or mobile phone Check the loan interest rate and repayment plan with the bank to avoid any impact on your credit. Of course, you can also activate the SMS reminder notification function at the bank.