Will bank loan interest rates fall again?
Will they fall?
1. First of all, we need to know that loan interest is calculated based on floating interest rates, but after bank loan interest is adjusted, the loan calculation interest rate level will also be adjusted accordingly. Of course, no matter how this is calculated, it will not affect the paid interest at all. However, after the bank interest rate is adjusted, the unpaid portion of the loan will be adjusted accordingly. There are three forms. First, after the bank interest rate is adjusted, the loan interest rate will be adjusted accordingly. New interest rates will be implemented at the beginning of the first year, such as Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank. The second is to adjust every full year, and the new interest rate can be adjusted and implemented every full year of repayment. The third is that both parties agree that the new interest rate will be implemented in the first month after the bank interest rate is adjusted.
2. Housing loans are adjusted in line with national policies. The national discount is 30% off the base interest rate. When the base interest rate is adjusted, it will be 30% off the base interest rate. If the country cancels the 30% discount policy, the interest rate discount for part of the loan that has not been paid off will also be cancelled. Of course, the interest on the part of the principal that has been repaid will not be affected. After the national policy changes, the new policy will be implemented in January of the following year. For example, if the discount is canceled now, you can still enjoy the discount this year, but the discount will be canceled starting in January next year.
How is the interest on a home loan calculated?
1. First of all, we need to know that loan interest is generally calculated on a monthly basis. Compound interest means that after each interest calculation period, the remaining interest must be added to the principal to calculate the interest for the next period. . In this way, in each interest accrual period, the interest in the previous interest accrual period becomes the interest-bearing principal, which is also called interest compounding. There are two methods of installment repayment, one is equal amounts of principal and interest, and the other is equal amounts of principal.
Mortgage loans have floating interest rates, which are adjusted with interest rate adjustments and changes with national preferential policies. Loan interest is calculated based on floating interest rates. After the bank loan interest is adjusted, the interest rate level for loan interest calculation will also be adjusted accordingly. Of course, no matter how it is calculated, it has no impact on the interest paid. There will be an impact on adjusted interest. Generally, after bank interest rates are adjusted, the interest rates on the unpaid portion of the loan will also be adjusted accordingly.
2. Since the repayment methods are different, the monthly loan interest payments are also different. No matter what method of loan is used, the bank has a unified calculation standard for loan interest. The calculation method of loan interest is daily interest rate (0/000) = annual interest rate () ÷ 360 = monthly interest rate ( ‰ ) ÷ 30 monthly interest rate ( ‰ ) = annual interest rate ( ) ÷ 12 Loan interest for the current month = remaining principal loan last month Monthly interest rate; if the principal has been repaid in the current month = the repayment amount in the current month - the loan interest in the current month, the remaining principal in the previous month = the total loan amount - the accumulated repaid principal.
3. Recently, the deputy director of the CITIC Securities Research Institute emphasized that the restart of the 14-day reverse repurchase operation and the reduction of the operating interest rate are not a new round of policy interest rate reductions, but follow the 7-day reverse repurchase operation in November. The synchronized repurchase operation is reduced by 5 BP, and the interest rate term spread of the central bank's reverse repurchase operation is maintained at a stable space of 15 BP.
4. As New Year's Day approaches, the demand for funds for the New Year's Eve is strong at the end of the year, and the funding interest rate has risen. The central bank gradually arranges the injection of liquidity for the New Year's Eve to meet the demand for funds at the end of the year, ensuring that the total liquidity of the banking system at the end of the year is reasonably sufficient. . As of 9:45 am on December 18, DR001 closed BP lower than the previous trading day, and DR007 closed BP higher than the previous trading day.
5. Industry insiders also said that pre-adjustment and fine-tuning operations for short-term market fluctuations may be launched in the next two weeks. The central bank's flexible and appropriate easing adjustments at the end of the year may be aimed at laying the foundation for cooperating with the issuance of special bonds and other macroeconomic policies in early 2020
Will bank loan interest rates be lowered?
If the mortgage interest rate drops, the mortgage interest rate of those who have already taken out a loan will also drop accordingly.
This is because current domestic personal mortgage loans are basically based on floating interest rates, so most mortgage contracts signed by borrowers and banks also have floating interest rates.
Because of this, when the mortgage interest rate is adjusted, the calculation of the borrower's mortgage interest rate will also be adjusted accordingly, and this of course includes customers who have already taken out a loan.
In other words, every time the central bank cuts interest rates, the borrower's monthly payment will decrease accordingly; on the contrary, there will be a corresponding increase.
However, everyone needs to note that the central bank's RRR cut does not necessarily mean that mortgage interest rates will fall. After all, mortgage interest rates will be affected by many aspects, such as local market conditions, loan fund supply and capital costs. etc.
So don’t follow the trend and buy a house when you see the RRR cut. You should pay more attention to the information about mortgage interest rates. It’s not too late to buy a house after it really drops.
Home loan, also known as home mortgage loan. A home loan is when a home buyer fills out an application for a home mortgage loan to the bank and provides legal documents such as ID card, income certificate, house sales contract, letter of guarantee, etc. that must be submitted. The bank will make a commitment to the home buyer after passing the review. Grant loans, and handle real estate mortgage registration and notarization based on the house sales contract provided by the home buyer and the mortgage loan contract signed between the bank and the home buyer. The bank will directly transfer the loaned funds to the house selling unit within the period specified in the contract. on the bank's account.
Housing Loans
Personal housing loans refer to loans issued by banks to borrowers for the purchase of ordinary houses for self-use. Borrowers must provide security when applying for a personal home loan. There are three main types of personal housing loans: entrusted loans, self-operated loans and portfolio loans. Entrusted loans
Personal housing entrusted loans refer to loans issued by banks to individuals purchasing ordinary housing in accordance with specified requirements, using housing provident fund deposits as the source of funds, and in accordance with the entrustment of the housing provident fund management department. Also called provident fund loan.
Self-operated loans
Personal housing self-operated loans are loans issued to individual home buyers with bank credit funds as the source. It is also called commercial personal housing loan, and the loan names of each bank are also different. China Construction Bank calls it personal housing loan, and Industrial and Commercial Bank of China and Agricultural Bank of China call it personal housing guaranteed loan.
Combined Loans
Personal housing portfolio loans refer to loans issued to the same borrower for the purchase of ordinary housing for self-use from housing provident fund deposits and credit funds. It is a personal housing entrusted loan and a portfolio of self-operated loans. In addition, there are housing savings loans and mortgage loans.
Mortgage repayment methods: equal amounts of principal, equal amounts of principal and interest, biweekly payments, etc.;
Loan amount: After passing the bank's review, you can loan 80% of the property value.
Mortgage down payment: A mortgage loan for a first home requires a down payment of 30%, and a mortgage loan for a second home requires a down payment of 50%.
Loan period: The loan period for first-hand houses is 30 years, and that for second-hand houses is 20 years. At the same time, the loan period plus the age of the applicant must not exceed 70 years old.
Loan interest rates: The benchmark interest rate for first-home loans with a term of more than 5 years is 6.55, and the interest rate for second-home loans is 1.1 times higher than the benchmark interest rate, which is 7.26.
Will bank mortgage interest rates be reduced?
The interest rate will not be reduced because the interest rate of your loan at that time is unchanged during the fixed loan period and uses the national standard interest rate. You don’t have to worry about the fact that the interest rate of policy loans for mortgage loans is very low. Generally, the loan term of a mortgage loan is up to 30 years, and the interest rate is about 10 to 30 percent higher than the national standard interest rate of 4.9 per annum. For example, the central bank now stipulates that the five-year standard loan interest rate is 4.9, and the bank's floating rate is 20, then the actual mortgage interest rate is 4.9 × (120) = 5.88.
The benchmark interest rate is the guiding interest rate for commercial bank deposits, loans, discounts and other businesses announced by the People's Bank of China. The deposit interest rates of various financial institutions can be lowered by 10% based on the benchmark interest rate, and the loan interest rates can be lowered by 10% based on the benchmark interest rate. Up or down 20. The benchmark interest rate is a universal reference rate in the financial market. Other interest rate levels or financial asset prices can be determined based on this benchmark interest rate level.
Benchmark interest rate is one of the important prerequisites for interest rate marketization. Under the conditions of interest rate marketization, financiers measure financing costs and investors calculate investment returns. Objectively, they all require a generally recognized interest rate level as a reference. Therefore, the benchmark interest rate is the core of the interest rate marketization mechanism. Adjust the central bank's benchmark interest rate, including: re-lending interest rate, which refers to the interest rate used by the People's Bank of China to issue re-loans to financial institutions; rediscount interest rate, which refers to the rate at which financial institutions rediscount the discounted bills they hold with the People's Bank of China. The interest rate adopted; the deposit reserve interest rate refers to the interest rate paid by the People's Bank of China on the statutory deposit reserves deposited by financial institutions.
The excess deposit reserve interest rate refers to the interest rate paid by the central bank to the reserves deposited by financial institutions that exceed the statutory deposit reserve level. Adjust legal deposit and loan interest rates of financial institutions. Establish the floating range for deposit and loan interest rates of financial institutions. Formulate relevant policies to adjust various interest rate structures and grades, etc. The benchmark interest rate in Western countries is traditionally the rediscount rate of the central bank, but this is not always the case. The benchmark interest rate in the UK is the London Interbank Offered Rate. Well-known benchmark interest rates include London Interbank Offered Rate and the U.S. federal benchmark interest rate. In China, the benchmark interest rate is the deposit and loan interest rates stipulated by the People's Bank of China for national specialized banks and other financial institutions. Specifically, ordinary people use the bank's one-year time deposit interest rate as the market benchmark interest rate, while banks use the overnight lending rate as the market benchmark interest rate.
Can the loan interest rate be lowered in 2022?
The loan interest rate should be lowered in 2022.
The People's Bank of China decided to lower the deposit reserve ratio of financial institutions by 0.5 percentage points on July 15, 2021 (excluding financial institutions that have implemented a 5 deposit reserve ratio). After this reduction, the weighted average deposit reserve ratio of financial institutions is 8.9.
This RRR cut is a comprehensive RRR cut. Except for some county-level corporate financial institutions that have implemented a 5 deposit reserve ratio, other financial institutions generally lower the deposit reserve ratio by 0.5 percentage points. The RRR cut releases long-term The capital is about 1 trillion yuan.
What impact does the RRR cut have on our money:
1. Loan interest rates drop
The drop in bank loan interest rates will reduce the loan interest for many people For example, if interest rates fall, the mortgage loan linked to the interest rate will fall, and the monthly repayment amount will be reduced, which can squeeze out more funds for consumption. Because interest rate cuts and reserve requirement ratio cuts are loose policies that will release liquidity, they will generally lead to inflation and rising prices.
2. Most bank deposit interest rates remain unchanged
The RRR cut will have no direct impact on bank deposit interest rates, and most banks will remain unchanged. However, since banks have turned over less deposit reserves after the RRR cut, more funds can be utilized, which means that the funding situation has become looser. Although the benchmark deposit interest rate remains unchanged, banks may lower the interest rate if they are not short of money.
3. The interest rate of government bonds remains unchanged
The interest rate of government bonds is generally closely related to the deposit interest rate. After each interest rate cut, the interest rate of the new round of government bonds will decrease accordingly. However, the reduction criterion There will be no impact on Treasury bonds and interest rates will remain unchanged.
4. The interest rate of large-denomination certificates of deposit is not affected
The interest rates of large-denomination certificates of deposit are the same as treasury bonds. Taking the 3-year term as an example, state-owned banks and national joint-stock companies The bank time deposit interest rate is generally the same as the benchmark interest rate at 2.75, while the large-denomination certificate of deposit rate is 40-52 higher than the benchmark interest rate; the time deposit interest rate of city commercial banks and rural commercial banks is in the range of 3-4, while the large-denomination certificate of deposit rate is generally 55 higher than the benchmark interest rate, reaching 4.2625.
At present, the interest rates on certificates of deposit are generally 40% higher than the benchmark interest rate. The high starting point and low interest rate have long been questioned. If the interest rate is lowered further, it will become even less attractive to investors. The interest rates on certificates of deposit are not expected to be affected after this RRR cut.
5. The rate of return on bank financial management is reduced
The RRR cut will have an important impact on the allocable assets of bank financial management, which will lead to a reduction in the investable assets of financial management and a decline in the rate of return on assets. In turn, it will force banks' financial management yields to decline.
Judging from the experience of the past two RRR cuts, bank financial management yields will drop significantly three months after the RRR cut starts, with the average decline in one year being around 1.
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An interest rate cut lowers the bank's loan interest rate. It does not increase the amount of market funds, but it can change the direction of capital investment. It is mainly to encourage corporate investment behavior, but it does not necessarily mean that the currency circulation will increase as a result. Cutting interest rates has two main effects:
1. By reducing the return on central bank deposits, it allows money to enter the market outside banks and increases transaction activity;
2. It can reduce the cost of loans , improve the competitiveness of products. So to put it simply, lowering the reserve requirement ratio is to put currency into circulation, and lowering interest rates is to encourage investment.
This ends the introduction on whether bank loan interest rates will decrease and whether bank loan interest rates will increase. Have you found the information you need?