Banks in China have announced that they will switch to floating rate mortgage pricing within a certain period of time, and so has Bank of Communications. On July 20th, 20 19, they announced the batch conversion of floating rate mortgage pricing benchmark, and decided to adjust the unified quotation rate (LPR) which has not been converted into the loan market to LPR floating rate addition and subtraction on August 2nd next year. Of course, the customer has adjusted the interest rate to a fixed interest rate before, so it will not be adjusted.
This is the whole story. According to the previous regulations of the central bank, the conversion of the pricing benchmark of floating rate loans, including mortgages, was started on March 1 day, and the conversion was completed in principle by banks all over the country on August 3 1 day. Affected by the domestic epidemic, domestic banks basically require customers to handle their own business through online channels such as mobile banking and online banking. Of course, some areas can also handle business on the spot. With the end of the conversion time, state-owned banks choose batch conversion to further promote the conversion of the pricing benchmark of floating interest rate loans.
As we all know, different loan interest rates make different choices. If the lender chooses to convert to a floating interest rate based on LPR, it should be calculated as follows: the loan interest rate will remain unchanged at 5.6% until the end of 2020; Add the spread of 80 basis points, and the difference between the execution interest rate and the LPR published on February 20, 20 19, 19, and this spread will remain unchanged in the future; At the time of conversion, the borrower and lender determine the repricing period as 1 year, the repricing date as 1 day every year and 1 day the following year. In February 65438, the effective interest rate was adjusted to the five-year LPR+0.8% announced on February 20, 2020, and calculated annually thereafter.