Can those who have already bought a house and taken out a loan enjoy it? Interpretation 2 of the "New Shanghai Nine Rules" on the property market: Mortgage interest rates will be lowered again
Today, Shanghai released 9 real estate market optimization and adjustment policies, among which the adjustment of home purchase loan interest rates attracted attention——
The lower limit of commercial personal housing loan interest rates for first homes is adjusted to be no less than 45 basis points less than the market quoted interest rate for loans of the corresponding term, which is 3.5%.
The lower limit of commercial personal housing loan interest rates for second homes is adjusted to be no less than 5 basis points less than the market quoted interest rate for loans of the corresponding period, which is 3.9%.
The Lingang New Area of the Free Trade Zone and the six administrative regions of Jiading, Qingpu, Songjiang, Fengxian, Baoshan and Jinshan will continue to implement differentiated policies. The lower limit of commercial personal housing loan interest rates for second homes will be adjusted to no less than the market quoted interest rate for loans with corresponding terms. Minus 25 basis points, which is 3.7%.
Taking the first home as an example, if the commercial loan limit is 1 million yuan, the loan is for 30 years, and the equal principal and interest repayment method is used, the monthly repayment of the home buyer will be reduced by approximately 198 yuan after this interest rate reduction, and the cumulative monthly payment for 30 years will be reduced by more than 198 yuan. 70,000 yuan.
While potential home buyers are cheering for the interest rate cut, many borrowers who have already bought a house are asking, can they enjoy this interest rate cut?
Previously, Shanghai’s home purchase interest rate has undergone an adjustment, and existing housing loans were not included in it.
From the perspective of contract logic, when a home buyer signs a loan contract with a bank to set the loan interest rate, the number of points plus or minus LPR is agreed upon. In other words, only when the LPR drops, the monthly repayments of these home buyers will decrease.
Take the purchase of first homes from the end of July 2021 to mid-December 2023 as an example. Although the current batch of home buyers are their first homes, the interest rate remains at LPR 35 basis points, which is obviously not a small gap from the latest first home interest rate. Still based on the calculation of a commercial loan limit of 1 million yuan, a 30-year loan, and equal principal and interest repayments, the monthly repayment will be about 458 yuan more. If a home buyer borrows four to five million yuan, the gap will be even greater.
The reason why people have the illusion that the existing loan interest rate can be lowered is because some buyers who were previously judged to be second-home buyers due to policy reasons were re-identified as first-home buyers under the New Deal at that time, so it was logically changed to the then-current homebuyers. First set interest rate. But this was only an adjustment for the determination of the number of housing units to be purchased. The subsequent two special adjustments to mortgage interest rates did not include this batch of existing housing loan borrowers.
In this regard, many existing home purchase loan holders have expressed that they may find ways to repay their loans in advance.
Fortunately, existing provident fund interest rate adjustments can be enjoyed by existing housing loan borrowers, but the new interest rate will not be implemented until January 2025. It is worth noting that only loans with a term of more than 1 year are allowed, that is, 2.85% for the first loan and 3.325% for the second loan.
