[Explanation] With the frequent adjustment of first-home loan interest rates in many places, mortgages have entered a low-interest rate range, and many home buyers have begun to consider early repayment.

Faced with the phenomenon of early loan repayment, many banks have set up a "time threshold", and buyers need to make an appointment two months or more in advance.

"Repaying the mortgage in advance" why set off a climax?

  [Explanation] On February 6, the reporter got through the customer service hotline of No. 1 Bank. The staff told the reporter that most of the calls received recently were about early repayment.

  [Concurrent] Staff of China Construction Bank

  (Phone) The line is not busy, is it?

  (Reporter) The line is off.

  Because there are so many people making an appointment for repayment, they are all queuing up.

There are two ways to repay in advance, one is online repayment appointment, and the other is offline repayment appointment.

The online repayment appointment means that the online banking will automatically deduct the transfer on the day.

Offline (repayment), that is, you need to go to the counter to pay back.

  [Explanation] The staff told reporters that at present, an appointment is required for early repayment, and some banks have already made an appointment until April this year.

  [Concurrent] Staff of China Construction Bank

  Offline appointments have been scheduled until April. If you are online, it may be in the middle and late March.

  [Concurrent] Industrial and Commercial Bank of China staff

  You can apply online now, go to "Loan" (in the option) "My Loan" in the ICBC mobile APP, and then there is an "early repayment".

It is indeed (reserved) until April.

  [Explanation] Why is there a wave of queuing up to repay loans in advance?

Experts believe that with the unsatisfactory income from investment and financial management last year, it is difficult for conservative groups to find a good place to go for funds. Therefore, more and more financial consumers tend to "de-leverage" through early repayment.

  [Concurrent] Wei Hongxu, a researcher at Anbang Think Tank

  Now everyone is holding this money, and he doesn't know what to do with the extra money.

If you invest, you (may) lose money, so you have to pay off the existing debts first.

In another area, everyone has a strong sense of risk. First, we can repay part of the existing debts in the past, so as to reduce some pressure on future expenses.

Furthermore, I feel that especially after the mortgage interest rate was lowered, those residents who had some fixed-rate loans in the past thought it was inappropriate, so they could pay off the high-interest rate loans in the past.

  [Explanation] Experts said that part of the reason for early repayment is due to the psychological factors of buyers.

  [Concurrent] Liu Zhiqin, Senior Researcher, Chongyang Institute for Financial Studies, Renmin University of China

  Because Chinese people are used to paying attention to "being free from debt" and want to reduce the burden of life. One of the important reasons is to reduce debt, especially mortgage and car loans.

In recent years, it has become more prominent, (early repayment) can better arrange life and career development.

  [Explanation] For banks, housing loans are high-quality assets with long-term stable interest-bearing. If the amount of prepayment increases, it will directly affect the bank's interest income, and it will also affect the bank's overall use of long-term assets.

  [Concurrent] Liu Zhiqin, Senior Researcher, Chongyang Institute for Financial Studies, Renmin University of China

  On the surface, early repayment is beneficial to the return of bank funds, but in fact it will also affect or even disrupt the layout and planning of bank funds.

Why are banks unwilling to repay early?

The biggest problem with this for sure is the reduced returns on banking projects.

This will create a contradiction, which I think can be alleviated in some way, for example, when signing a contract.

  [Explanation] From the perspective of home buyers, under what circumstances is it more cost-effective to pay off the mortgage in advance?

Experts also answer this question.

  [Concurrent] Wei Hongxu, a researcher at Anbang Think Tank

  For example, if you have just taken out a loan for one or two years, and you have paid more interest, then it is still beneficial to repay in advance in this case.

If it comes to the later stage, the loan is 20 years to half, 10 years or more than 10 years, the repayment model of equal principal and interest, and more than half of the interest expenses have been paid, which is not particularly cost-effective in this case.

  [Explanation] At the same time, experts suggest that house buyers should consider rationally whether to repay the loan in advance, and avoid blindly following the trend.

  [Concurrent] Wei Hongxu, a researcher at Anbang Think Tank

  If there is a relatively clear interest rate that is higher than the mortgage with relatively stable income, then of course I can suggest you to invest.

Calculate your gains and losses.

I think it should be relatively rational, instead of following the trend and watching others do it, then do it yourself.

  Reported by Chi Hanyu from Beijing

Responsible editor: [Ye Pan]