Following the "interest rate cut" of the existing first home loan interest rate, the batch adjustment of the "second set to the first set" interest rate has also begun. On October 10, a reporter from Beijing Business Daily learned that a number of existing mortgage borrowers who met the conditions of "second set to first set" had inquired about the adjusted mortgage interest rate information from the mobile banking app of various banks after preliminary application, and some interest rates were reduced to 25.4%, and the existing mortgage interest rate of individual borrowers who issued loans after May 2, 2022 has been reduced to 5%. In the view of analysts, the interest rate adjustment of "second set to first set" stock housing loan is mainly aimed at buyers who do not meet the first set of standards at the time of purchase but meet the first set of recognition according to the new policy, and the inclusion of this part of the stock housing loan into the scope of interest rate adjustment will help expand the coverage of policy benefits and effectively reduce the phenomenon of "early repayment".
The adjustment kicked off
"The 'second set to the first set' was successful, at first I thought it would be good to reduce it to 4.3%, but I didn't expect it to be directly reduced to 4%, a few hundred a month", Sun Yumo (pseudonym), a borrower from Shaanxi, was a little overjoyed, she was a mortgage after May 2022, 5, after the introduction of the existing mortgage interest rate adjustment policy, after the "second set to the first set" review application, Sun Yumo's adjusted mortgage interest rate was implemented in accordance with "LPR-14BP", on October 20, the interest rate has been changed from the original 10.25% Down to 4%.
It is understood that the scope of the interest rate adjustment of the stock housing loan "second set to the first set" includes the existing housing loan that does not meet the first housing standard at the time of loan issuance or contract signing, but the current actual housing situation meets the first housing standard in the city, as well as the loan with fixed interest rate or benchmark interest rate pricing, and the borrower has applied to the bank to convert to the existing housing loan with variable interest rate loan priced by LPR.
Liu Xuhui (pseudonym) from Beijing also saw interest rates cut after applying to convert fixed interest rates to LPR pricing variable rate loans. Liu Xuhui found out the information on the adjustment of the interest rate of existing mortgages earlier than Sun Yumo, but the adjusted interest rate was still implemented on October 10.
Liu Xuhui introduced that his mortgage was disbursed in June 2019, when Beijing implemented the "housing loan subscription", because there was a loan record when changing houses, the application for the mortgage was executed according to the interest rate of the second house, and he had not changed the fixed interest rate to a floating interest rate before. In September this year, he submitted an application for a mortgage interest rate adjustment, replacing the fixed interest rate with a floating rate, and on October 6, he found out the results of the interest rate adjustment, which was reduced from 9.10% to 23.5%, effective October 88.
Like Sun Yumo and Liu Xuhui, on October 10, a number of existing mortgage borrowers who met the conditions of "second set to first set" had inquired about the adjusted mortgage interest rate information from the mobile banking app of each bank after applying in the early stage, and the mortgage interest rate of some borrowers dropped to 25.4% or 3.4% according to the time of loan issuance and the lower limit of the first home loan interest rate policy in the city.
Chen Xiao, a senior analyst at Zhuge Data Research Center, believes that the adjustment of the interest rate of the stock mortgage of "two sets to the first set" is mainly beneficial to buyers who are recognized as the second set of houses when they purchase a house, and the "recognize the house without recognizing the loan" policy after the implementation of the policy is re-identified as the first set of buyers, after the policy adjustment, they can enjoy the lower interest rate level of the first house and save the cost of the mortgage, and this group of people is mainly the improvement housing customer group or the customer group who has a loan to buy the property again locally.
The adjustment is progressing steadily
The adjustment of the interest rate of the existing housing loan originated from the "Notice on Matters Related to Reducing the Interest Rate of the First Housing Loan in Stock" (hereinafter referred to as the "Notice") issued by the State Financial Regulatory Administration on People's Bank of China August 8, guiding the borrowers and lenders of commercial personal housing loans to adjust and optimize assets and liabilities in an orderly manner, and reduce the interest rate of the first commercial personal housing loan in stock.
In the implementation rules, the bank clarifies that the interest rate of the first set of existing housing loans that meet the adjustment conditions will be adjusted in batches on September 9, and the existing housing loans that "transfer the second set to the first set" and implement fixed interest rates or benchmark interest rates can initiate an application for interest rate adjustment on the same day, and after the review is approved, a unified batch adjustment will be made on October 25.
From the perspective of the adjustment of the interest rate of the stock first home loan, Zou Lan, director of the Department of Monetary Policy of the People's Bank of China, previously introduced that the work of reducing the interest rate of the stock first home loan is basically nearing the end, from September 9 to October 25, in the first week of the implementation of the policy of reducing the interest rate of the stock first home loan, 10.1% of the eligible stock first home loans completed the interest rate reduction, a total of 98.5 million cases, 4973.21 trillion yuan. The adjusted weighted average interest rate was 7.4%, an average decrease of 27.0 percentage points. At present, the vast majority of borrowers have enjoyed the benefits for the first time.
On October 10, at the press conference on the data and information of the banking and insurance industry in the third quarter of 20 of the State Financial Regulatory Administration, the relevant person in charge also revealed that the interest rate of the existing first home loan has been steadily reduced, and most of the loans have been adjusted in place, effectively alleviating the pressure on residential housing loan expenditure.
Compared with the automatic adjustment of the interest rate of the existing first home loan, the existing housing loan with a fixed interest rate or benchmark interest rate needs to be actively applied to the bank by the borrower. When applying, borrowers generally need to submit relevant supporting materials, and the list of "second set to first set" certification materials usually includes proof of marital status, real estate inquiry certificate, etc., and the materials submitted by different branches vary depending on the region.
Liu Xuhui mentioned that when he applied for the "second set to the first set" stock housing loan interest rate adjustment application, he signed the family ownership complete housing application form and the financial network credit inquiry authorization letter on the mobile banking app, and uploaded identity proof materials and marriage certificate materials.
Xue Hongyan, vice president of Star Map Financial Research Institute, said that the interest rate adjustment of the existing first home loan has landed, and the interest rate has been significantly reduced, which has eased the interest payment pressure of home buyers and slowed down the phenomenon of "early repayment". The interest rate adjustment of the "second set to the first set" stock housing loan is mainly aimed at buyers who do not meet the first set of standards at the time of purchase but meet the first set of recognition according to the new policy, and the inclusion of this part of the stock housing loan into the scope of interest rate adjustment will help expand the coverage of policy benefits and better play the policy effect.
Early repayment ebb and flow
Reducing the interest rate of existing housing loans can effectively reduce the phenomenon of "prepayment" while reducing the interest expense of borrowers. Chen Xiao said that the adjustment of the interest rate of the existing housing loan for borrowers, can reduce the cost of buying a house, reduce the pressure of repayment, is a big plus, especially for the second set of customers to change the first set of customers, from the higher interest rate of the second house to the low level of the first set of interest rates, the reduction of interest rates can also effectively alleviate the phenomenon of early repayment, after all, the main reason why a large number of groups choose to prepay is that the interest rate difference between new and existing mortgages is too large, resulting in aggravated psychological imbalance.
Xue Hongyan believes that the reduction in the interest rate of existing housing loans can be regarded as a concentrated interest concession by banks to house buyers. From the actual landing situation, after the interest rate of the existing housing loan is reduced, buyers generally have a more obvious sense of gain, the pressure of interest payment is reduced, and the willingness to "prepay the loan" is also significantly reduced. Data show that in September, new residents' medium and long-term loans were 9 billion yuan, an increase of 5470.2014 billion yuan year-on-year, considering the negative year-on-year growth of real estate sales in the same period, the increase in residents' medium- and long-term loans mainly benefited from the sharp decline in prepayment.
Regarding the follow-up capital planning suggestions for borrowers after the adjustment of the interest rate of existing housing loans, Xue Hongyan said that after the interest rate of existing housing loans is reduced, the loan interest rate returns to a reasonable level, and buyers need to reassess the necessity of "early repayment". "Early repayment" is not only a short-term capital choice, but also involves long-term capital planning, because the term of the mortgage is more than 20 years, and the borrower should not only compare the short-term financial income cost-effectiveness, but also combine the long-term cost performance when choosing to repay the mortgage early. After all, for many people, a mortgage is the only loan with lower costs, longer terms, larger amounts, etc., and if money may be needed in the next few years, "prepayment" is no longer the best choice.
Chen Xiao suggested that after the interest rate adjustment, the pressure of repayment of existing housing loan borrowers is reduced, and there is no need to rush to "prepay the loan", the funds on hand are relatively abundant, borrowers can replan the funds on hand, make financial plans to obtain more benefits, such as increasing the proportion of investment, investing idle funds in financial projects, and also buying new real estate. In short, borrowers should do a good job in financial portfolio, balance the relationship between investment and savings, balance the proportion of high-risk and high-yield investment and steady and low-return investment, and diversify investment risks.
Beijing Business Daily reporter Li Haiyan