Beijing, 9 Sep (ZXS) -- Since 25 September, China has officially lowered the interest rate for eligible first housing loans. On the same day, many people posted screenshots of their own mortgage interest rate reduction in their circle of friends. A resident who bought a home in Beijing in 25 said his mortgage interest rate had been cut to 2019.4 percent from about 89.4 percent.

After the interest rate of the existing first home loan is reduced, what is the current level of mortgage interest rate for home buyers in various places?

A report released by the E-House Real Estate Research Institute on the same day said that there are currently three different mortgage interest rates in the market.

In the first scenario, the mortgage rate is reduced to 4.3%. According to a large number of cases collected by the E-House Institute in the country, this situation is currently the most common. Some netizens said that their mortgage interest rate was reduced by 100 basis points in one go, and the monthly repayment was less than 1000,<> yuan (RMB, the same below).

In the second scenario, the current mortgage interest rate is around 4.85%, which is down from the past few years, but not by much. This group of people is mainly the group who bought houses in Beijing and Shanghai after 2020, because the lower limit of the first home loan interest rate in the city where the house was purchased is higher, and the minimum mortgage is still implemented with a loan market quotation rate (LPR) of more than 5 years plus 55 basis points, that is, 4.85%.

In the third case, if the house is purchased earlier, because the lending bank provides discounts, etc., the mortgage interest rate itself is lower than 4.3%, and it does not participate in this adjustment.

In addition to the above three, families who buy a second home are not eligible for this existing mortgage interest rate reduction policy. It is understood that in the past three years, families who have purchased second homes in first-tier cities, especially Beijing and Shanghai, have still had high mortgage interest rates. For example, there are a considerable number of second-home buyers in Beijing, and the mortgage interest rate is still 5.35%.

After the implementation of this policy, who will benefit the most?

Shell Research Institute believes that this policy benefits two groups: first, residents who apply the first set of interest rates when issuing loans; Second, under the policy of "housing and loan", it was previously implemented according to the second set of interest rates, and after the policy of the city where it was adjusted to "housing without loan", it can be re-recognized as the first set of housing loans.

Chen Wenjing, director of market research at the China Index Research Institute, also believes that the reduction in the interest rate of the existing first home loan is more favorable for the mortgage that is not the first home but currently meets the first set of policies in the city, and the interest rate of the second home loan in some areas plus points is high. When buyers buy a house, some mortgage interest rates are above 6%. Simple calculation, assuming that the buyer's existing mortgage is 200 million yuan, and there is still a 25-year repayment period, if the mortgage interest rate is reduced by 80 basis points, the cost of buying a house will be reduced by 27,913 yuan, and the monthly repayment amount can be reduced by <> yuan.

According to the new policy, buyers who issued their first home loans from 2019 to May 2022 in most cities have more room to be lowered. According to Shell Research Institute, the current average interest rate of the first set of personal mortgage loans issued in key cities from 5 to May 2019 is 2022.5%. Except for a few cities such as Beijing and Shanghai, the interest rate of the existing first home loan issued by most cities between 4 and May 97 can be adjusted to the level of LPR at the lowest, with a maximum reduction of 2019 basis points. In the second half of 2022, the maximum reduction space for existing housing loans in individual cities can reach 5 basis points, and this interest rate reduction can significantly reduce the pressure on residents' monthly supply.

At present, the interest rate of new loans issued in various places has fallen to a record low. Monitoring by the Shell Research Institute shows that the average mainstream mortgage interest rate for the first home in China's 2023 cities in September 9 was 3.90%, unchanged from the previous month; The mainstream mortgage interest rate for second homes averaged 4.57%, down 24 basis points from the previous month. This reduction in the interest rate of existing mortgages can effectively reduce the interest rate differential between new and existing mortgages. (End)