There is no conversion interest rate in the lpr conversion period given by the bank, and the default is LPR interest rate. Take the Agricultural Bank of China as an example. For individual housing loans with floating interest rate issued or signed by banks before 10/2020, if they have not been converted into pricing benchmark by August 24, 2020 (inclusive), the loan pricing will be uniformly converted into floating interest rate formed by reference to LPR plus integral (integral can be negative).
The converted loan bonus value is equal to the difference between the latest interest rate level of the original contract and the corresponding term issued by LPR in February 20 19. The added value is fixed during the remaining term of the contract. The repricing period and repricing date remain unchanged, consistent with the agreement in the original contract. For loans with a repricing period shorter than 1 year, the repricing period is adjusted to 1 year.
Extended data:
If batch conversion is not desired, the borrower needs to register with China Agricultural Bank, online banking, customer service or the original loan handling bank from the date of announcement to August 24, 2020 (inclusive). At that time, our bank will not convert your personal housing loan in batches.
If there is any objection after the batch conversion of Agricultural Bank, the borrower can negotiate through the head office of Agricultural Bank, online banking, customer service or the original loan handling bank before 65438+February 3, 20201. If the borrower wants to cancel the batch conversion and maintain the pricing method of the original contract, he can apply through the above channels. Undo can only be performed once.
If not, what will happen to the bank's pricing benchmark business?
If the bank pricing benchmark business is not handled, it will be automatically converted into LPR interest rate according to the notice issued by the bank. Taking Bank of China as an example, according to the Announcement on Converting the Pricing Benchmark of Individual Housing Loans with Floating Interest Rate into LPR in Batch issued by Bank of China, the interest rate pricing method of the original contract is uniformly converted into a bonus form based on LPR (the bonus can be negative), as follows:
(1) The plus sign (which can be negative) is the difference between the latest execution interest rate of the original contract and the corresponding term LPR published in February 20 19.
(2) During the remaining period of the contract, the value of bonus points (which can be negative) is fixed.
(3) Equivalent conversion, that is, the interest rate level remains unchanged (excluding) from the batch conversion point to the first repricing date (interest rate adjustment date).
(4) On each repricing date, the loan interest rate level is calculated and determined by the corresponding term LPR on the day before repricing date and the added value determined during batch conversion.
(5) The re-pricing cycle is uniformly converted to 12 months. The repricing date remains the same as the original contract.
Extended data:
China Bank's batch conversion scope is floating rate personal housing loans that were not priced according to the reference loan benchmark interest rate before August 24, 2020 (excluding provident fund personal housing loans, military provident fund loans and provident fund discount loans). Batch conversion will be carried out from August 25, 2020.
If you need to handle it yourself, you can complete the conversion through mobile banking, online banking and smart counters of BOC outlets before August 24, 2020 (inclusive). The loan pricing benchmark can only be converted once, and cannot be converted again after conversion.
If I don't go to the bank to apply for interest rate conversion, will the bank automatically convert the interest rate without my own compulsion?
A person from a state-owned bank told the reporter that if some customers still did not switch on August 3 1 day, they are still waiting for the specific notice of whether to automatically switch to which one.
However, several banks will directly convert the pricing benchmark of existing mortgage customers into LPR through batch conversion. For example, China Merchants Bank said in the announcement that it will convert the pricing benchmark of commercial personal housing loans within the conversion scope into LPR in early April. If you want to keep the original contract arrangement unchanged, China Merchants Bank indicated that you can contact the bank before August 3, 20201.
It is worth noting that some banks set a time point, and after a certain time point, they will adopt batch conversion. Among them, Industrial Bank requires customers to sign and confirm the Supplementary Agreement on the Conversion of Personal Loan Pricing Benchmark Interest Rate as of July 3, 2020, and will carry out batch conversion of personal stock loans with reference to common banking practices.
In late July, Shanghai Pudong Development Bank also adjusted the personal housing mortgage loans that had not been transferred to LPR before July 20 to the floating interest rate pricing of LPR.