LPR mortgage interest rate conversion enters the countdown! Lenders have no choice on the repricing date
Sino-Singapore Jingwei Client, July 26 (Wei Wei) The recent work of linking LPR floating interest rates to bank stock mortgage loans is nearing completion. Some lenders have reported to Sino-Singapore Jingwei Client that the lending bank only provides The option "in accordance with the original contract" is usually January 1st each year.
Simply put, the repricing date is on this day of the year, and the customer's mortgage interest rate will be recalculated once, linked to the latest LPR quotation (Note: 1-19 of the current month is the repricing date, and the LPR quotation of the previous month is used) . This choice also affects the monthly payment adjustment every year. How should the lender choose?
There is only one option for repricing days
Mr. Xu recently received a call from the account manager of Jingzhou Rural Commercial Bank, instructing him to switch the mortgage interest rate pricing method to LPR on the WeChat applet as soon as possible.
"I found out during the operation that the repricing date only has the option of'according to the original contract agreement', and there is no choice at all." Mr. Xu told the Sino-Singapore Jingwei client that the original contract agreement was January 1 every year.
Source of Jingzhou Rural Commercial Bank LPR Interest Rate Conversion Page: Provided by the respondent
Mr. Xu said that his classmate handled the mortgage at the Bank of China, but he has two options, one is January 1 every year, and the other is the month and day of the year corresponding to the loan disbursement date.
Mr. Xu was quite dissatisfied with this. “I called and asked the bank customer service staff why this option is only available. The staff said that it can only change from next year.” Mr. Xu believed that the bank did not give himself the right to choose.
Another Mr. Yang also encountered the same situation, "I did a mortgage at the Bank of Tianjin two years ago. I read the news and learned that the mortgage interest rate is going to be converted to LPR this year, but I have not waited for notification. I waited for the notice, but when I opened the bank’s app, I found that the repricing day can only be selected as "adjusted according to the agreed repricing cycle".” Mr. Yang said.
Source of the Bank of Tianjin LPR Rate Conversion Page: Provided by the respondent
The Sino-Singapore Jingwei client dialed the customer service number of Bank of Tianjin, and the other party stated that the repricing day cannot be selected. After the conversion to LPR, it will be unified into effect on January 1 of next year, and the price will be re-priced on January 1 every year.
"My loan issuance date is September 23. If I can choose the repricing date, I hope to choose the loan issuance date so that I can enjoy the discount of interest rate reduction this year, but the bank only gives me one option." Mr. Yang told China The new Jingwei client has also done some homework. According to his understanding, if the repricing date is set to January 1, the LPR quotation on December 20 of the previous year must be referred to, and the bank’s funds at the end of each year will be relatively tight , Interest rates may rise, he thinks it will suffer.
Is it difficult to provide customers with more choices?
In fact, according to the previous regulations of the central bank, when financial institutions negotiate pricing benchmark conversion terms with customers, they can re-arrange the re-pricing cycle and re-pricing date. The re-pricing cycle for commercial personal housing loans is at least one year.
Sino-Singapore Jingwei Client respectively called ICBC, Agricultural Bank, China Construction Bank, Bank of China, and Bank of Communications. The customer service staff all expressed that there are two options. You can choose January 1 of each year, or choose the month to day corresponding to the loan disbursement date.
Previously, Postal Savings Bank of China, Industrial Bank, Chengdu Rural Commercial Bank and other banks were complained by customers because the mobile APP had only one option on January 1, but the above-mentioned banks all made improvements. Mr. Xue, a customer of Postal Savings Bank of China, called the loan manager on July 23, and the other party stated that the option of "the day of loan issuance" has been added to the mobile app since July. The customer service staff of Chengdu Rural Commercial Bank said that there are two options available on the mobile phone at the end of this month.
Why are there still many banks that only provide customers with one choice? "In fact, it is mainly for convenience. Before LPR, the mortgage interest rate is usually agreed. If the benchmark loan interest rate changes in the previous year, it will be adjusted from January 1 of the following year. This is generally the habit." Chief of Zhongguancun Internet Finance Research Institute Researcher Dong Ximiao analyzed the Sino-Singapore Jingwei client.
Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, also said that generally speaking, from the perspective of the convenience of interest rate calculation and the convenience of statistics, it is relatively convenient to calculate on January 1. Judging from the past repricing date, it was actually carried out on January 1, so that it is convenient for statistics including loan balances and loan repayments throughout the year.
However, Dong Ximiao pointed out that banks should give customers the right to choose the repricing date, and should not force customers to choose only January 1 each year. This shows that some banking services are not in place. System development is not difficult for banks. Many customers operate on their mobile phones and only have one more option.
Which is more cost-effective to choose on the repricing day?
The Sino-Singapore Jingwei client has learned that many banks have issued notices. If customers do not operate on the mobile app before August 20, they will automatically switch to LPR linkage (Note: the specific deadline is subject to the announcement of each bank), and stay There is not much time for lenders to choose, how should the repricing date be chosen? Which one is more cost-effective between January 1 and the corresponding date of the loan?
A loan customer manager of a joint-stock bank believes that if you only consider the time when you can enjoy the preferential interest rate of loans, and do not consider future interest rate fluctuations, the sooner the repricing day is, the better. For example, it is July. If the loan loan date is from August to December, you can choose the loan date as the repricing date, so that you can enjoy the discount of LPR reduction this year. If you choose January 1 every year for other months, then the earliest LPR can be linked to on January 1, 2021.
The above account manager also reminded that individual banks may have different system settings. In particular, customers with a loan date before August 20 should communicate clearly with the lending bank in advance to avoid adjustments until the loan loan date next year.
It should be noted that LPR is not the same as the benchmark lending rate in the past. Every month it will follow the market interest rate quoted change or unchanged, and the repricing cycle is usually one year, so which month to choose for repricing will determine the next 12 months. Monthly repayment interest rate. Just considering the time to convert LPR will not necessarily be able to enjoy the most cost-effective interest rate in the future.
Regarding the issue of high year-end interest rates that lenders are worried about, since the LPR quotation is less than one year, the law cannot be summarized. However, from the data of only 11 months, the price of LPR over 5 years in December 2019 is 4.8%, which is lower than the 4.85% of August-October 2019, but higher than the price of January-July 2020.
Yan Yuejin, for example, said that if a buyer agrees on August 25 as the repricing date and the price is set once a year, then on August 25, the interest rate will be based on the latest LPR quotation published in August. If this LPR is lower than the LPR quotation announced on December 20, then buyers can enjoy a relatively low LPR, which is relatively cost-effective. On the contrary, if the LPR is higher than the LPR announced in December, it is relatively uneconomical. In fact, it ultimately depends on the changes in LPR.
Zhang Dawei, chief analyst of Centaline Real Estate, said that from this year's situation, the LPR over five years in the first half of the year fell from 4.8% to 4.65%, a decrease of 15 basis points. Take a mortgage of 1 million and 30 years with the same principal and interest as an example, the monthly payment difference is about 90 yuan. Regardless of the repricing date, the difference may not be too great for the loan timing in the next few decades. (Zhongxin Jingwei APP)
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