"I went to the bank in advance to make an appointment to repay the mortgage in advance, and it can be officially processed on February 18." Wang Fei, a Beijing citizen, told the Shell Finance reporter that he made an appointment to repay the mortgage in advance of 100,000 yuan two months ago, and it will be processed in the near future.
Recently, under the dynamic adjustment mechanism of the first housing loan interest rate policy, the interest rate of housing loans has continued to decline, and the number of young people who repay their housing loans in advance has continued to increase.
Faced with the phenomenon of early repayment of loans, many banks have set up a "time threshold", and buyers need to make an appointment two or three months in advance or even longer.
There are also banks that suppress customers' early repayment behavior by increasing the cost of early repayment. In August last year, some banks caused controversy for collecting compensation for early repayment of housing loans.
Why do you have to pay off your mortgage early?
Analysys Analysis Su Xiaorui, a senior consultant in the financial industry, analyzed that with the decline in wealth management investment income and the increased volatility of the capital market and bond market since the second half of last year, it is difficult for conservative groups who occupy an absolute advantage to obtain funds. A good place to go, so more and more financial consumers tend to "reduce leverage" by repaying in advance, optimize their own debt structure, and at the same time seek "peace of mind".
However, early repayment may not be welcomed by banks, especially when personal mortgages are high-quality assets, banks will tend to take more "restrictive measures" such as repayment appointments and charges.
From the buyer's point of view, whether to pay off the mortgage in advance?
Under what circumstances is it more cost-effective to pay off the mortgage early?
Yan Yuejin, research director of Shanghai E-House Real Estate Research Institute, said, "Theoretically speaking, buyers who have just bought a house and have more residual interest can consider it. And buyers who have a longer repayment time have already paid off most of the interest. It is definitely inappropriate to choose to repay in advance.”
Early mortgage repayment requires an appointment
"It's not bad to be able to do it in three months"
Recently, a wave of "early loan repayment wave" is prevalent among young people.
Wang Fei, a Beijing resident, told the reporter that he had made an appointment two months ago to repay the mortgage of 100,000 yuan in advance, and it will be processed in the near future.
Another citizen, Xiao Li, said, "The application for early repayment submitted last night was approved after four o'clock in the afternoon, and the processing time is April 23."
It is understood that at present, some banks can carry out the operation of repaying loans in advance online through the APP, but the appointment depends on "hands-on speed".
Some house buyers said that when the APP tried to repay the loan in advance, the page displayed that the application for early repayment could not be accepted temporarily, and the online quota was full.
Some bank apps directly closed the online channel for early repayment, and had to go to the counter to queue up.
The account manager of a large state-owned bank told the Beijing News Shell Finance reporter that the early repayment needs to be applied to the business department first, and the deposit will be notified after the quota is allocated.
However, since the People's Bank of China has a fixed amount for each bank, it is necessary to queue up to make an appointment to repay the mortgage in advance.
"It's not bad to be able to do it in three months." The account manager said.
"There are too many people repaying in advance, and the bank has set a quota for repaying in advance, so they have been queuing up all the time." The account manager of another bank also told the reporter of Shell Finance and Economics that an appointment must be made in the system for repaying loans in advance. , At present, it takes at least two months to make an appointment at the bank.
Some bank analysts pointed out that some home buyers are willing to repay their mortgages in advance. This is mainly because the macroeconomic environment has been complicated in recent years, and market interest rates have continued to decline. Some early home buyers have high mortgage interest rates, and early repayment of mortgages reduces interest expenses; at the same time, Due to the decline in market interest rates and the general decline in asset returns, it is difficult to find assets with moderate risks and higher than mortgage interest rates, that is, some owners with "spare cash" find it difficult to find assets with matching risks and returns.
The above-mentioned analysts pointed out that mortgages can provide banks with high-quality assets with stable cash flow income. Early repayment of mortgages can speed up the return of funds and expand the space for mortgages, but it will also lose higher interest rates in the future. In this situation, banks will face the problem of finding similar high-quality asset matches in the short term, and the opportunity cost will increase.
"Personal mortgage loans are the core high-quality assets of banks. A large number of early repayment of mortgage loans will directly affect the revenue and profits of banks. Therefore, many banks choose to increase the repayment threshold." Wang Pengbo, a senior analyst in the financial industry of Broadcom Analysis, told the Shell Finance reporter.
Some people can save hundreds of thousands of interest by repaying in advance
Is it worth paying off a loan early?
"The interest rate is too high." Mr. Wei told the Shell Finance reporter that he must repay the mortgage in advance. It used to be that the wealth management income could cover the mortgage, but now it can't, so he wants to repay the mortgage in advance.
According to Mr. Wei's calculations, the loan amount for a real estate in Hebei is 700,000 yuan, and the repayment period is 25 years (5 years have been repaid). If it is paid off 20 years in advance now, the loan will be repaid at an interest rate of 5.2% and equal principal and interest Calculated by this method, the interest of about 37w can be saved.
An account manager of the Agricultural Bank of China also analyzed to the reporter that at present, if the wealth management income is far lower than the expected level, it is more appropriate to repay the loan in advance, unless there are better investment channels.
Compared with home buyers who get together to repay their loans in advance, some buyers also said that they do not plan to repay their mortgages in advance in the near future.
Li Fan, a Beijing resident who repaid a mortgage in advance last year, told reporters, "In this year's environment, I will definitely not repay the loan in advance, but I am more inclined to invest."
As a self-employed person, Ms. Huang believes that holding "cash flow" is relatively more cost-effective.
Ms. Huang told the Shell Finance reporter that the income brought by the operation with the balance payment is far greater than the interest saved by repaying the loan in advance.
Su Xiaorui pointed out that people with high interest rates on mortgage loans would prefer to repay early in order to save more interest in the current environment of low interest rates. At present, the first wave of domestic epidemics has come to an end. Uncertainties such as the follow-up second wave still exist, and it is expected that the number of people who tend to repay their loans early this year will remain at a high level.
So, what kind of person is suitable for early repayment?
Wang Pengbo believes that those who have spare money but cannot find a suitable investment channel, or those who have high expectations for asset stability, can choose to repay the loan in advance.
Yan Yuejin believes that there are too many interest expenses, and those who have spare money can choose to repay in advance.
In addition, in theory, buyers who have just bought a house and have more residual interest can also consider it.
However, buyers who have a longer loan repayment period have already paid off most of the interest, so it is definitely not appropriate to choose to repay in advance at this time.
"For individuals, early repayment of mortgages reduces interest expenses, but it needs to transfer capital liquidity, and the amount is not small." The above-mentioned bank analysts believe that, generally speaking, for mortgages with high interest rates, long repayment periods, and short-term Owners with large "idle" funds are relatively suitable.
He pointed out that in terms of trends, as the economy picks up, the interest rate center has risen, the financial market has returned to normal, the market risk appetite has gradually picked up, and the prepayment of mortgage loans is expected to decrease.
At the beginning of the new year, the regulators made a series of heavy voices, not only proposing to strongly support the purchase of the first house, but also proposing to encourage the consumption of bulk commodities such as houses and cars.
Su Xiaorui suggested that one is to clarify the relevant business process of repaying loans in advance to make the progress more transparent; the other is to fully respond to the spirit of supervision, pay attention to the expansion of new mortgages, and improve the purchase of houses for first-time buyers and second-home buyers with more children. Provide basic financial services.
Yan Yuejin also believes that the purpose of early repayment of mortgages is to reduce interest expenses, and attention should be paid to the phenomenon of "early repayment".
On the one hand, it is necessary to actively promote the spirit of "existing loans will also reduce interest rates" and reduce the behavior of repaying mortgages in advance.
On the other hand, all localities should conduct systematic research on the relationship between "mortgage interest rate reduction - mortgage repayment in advance", and actively reduce the burden on home buyers from the perspective of protecting the rights and interests of home buyers.
Beijing News Shell Finance reporter Wang Yuchen