A borrower has signed a replacement agreement, and the countdown to the batch adjustment of interest rates for existing first home loans
"I have called the handling branch several times to inquire about the housing loan situation, and the other party is all on the phone." "Recently, many customers have been calling to inquire about the adjustment of the interest rate of existing housing loans every day. We often work overtime until after 10 pm, and we don't even have time to eat." On one hand, there is the borrower's urgent expectation for the adjustment of the interest rate of existing housing loans, and on the other hand, the bank salesperson works overtime to ensure the smooth progress of related work.
At present, the countdown to the batch adjustment of interest rates for existing first home loans on September 25th has entered a "ten day" countdown. In addition to announcements by state-owned banks, joint-stock banks, urban commercial banks, and rural commercial banks on reducing the interest rates of existing first-time housing loans, several rural banks have recently joined the ranks.
From the interviews with reporters, it can be seen that in order to improve the convenience of applications, multiple banks have launched a "stock mortgage interest rate adjustment" function on their mobile banking apps, allowing borrowers to query relevant information. In addition, some borrowers who are unable to automatically convert on September 25th have received a phone call from the bank and signed a confirmation letter for the adjustment of the interest rate of the first personal housing loan online, adjusting it by issuing new loans to replace the existing first housing loan.
Banks actively prepare for war
On September 14th, Industrial and Commercial Bank of China launched the "Adjustment of Existing Housing Loan Interest Rate" function on mobile banking. Borrowers can check whether the first home loan interest rate policy or the second home loan interest rate policy is being implemented for housing loans, and whether it meets the range of automatic interest rate adjustment on September 25th.
The Securities Daily reporter learned from several borrowers who have applied for housing loans at Industrial and Commercial Bank of China that for personal housing loans that have already implemented the first home loan interest rate policy, the query page will display the word "first home" and prompt the borrower "If it is a floating rate loan priced at LPR, you do not need to actively apply for interest rate adjustment, our bank will adjust it uniformly". If the query page shows "second home", it will clearly prompt the borrower "Your loan currently follows the second home loan interest rate policy. If you meet the first home loan interest rate standard in your city as stated in our bank's announcement, you can submit an application to our bank after September 25th.".
Coincidentally, starting from September 12th, customers who apply for housing loans at China Construction Bank can use the "Adjustment of Existing Housing Loan Interest Rate" function on mobile banking apps, "China Construction Bank Smart Personal Loan" mini programs, and other channels to check the current loan status and consecutive days of arrears.
A staff member of a branch of China Construction Bank in Hebei told Securities Daily, "I applied for my first housing loan at China Construction Bank on December 5, 2019, with a term of 20 years and a fixed interest rate adjustment method of 5.88% per year, which is considered a high interest rate. Currently, I plan to apply to the bank for negotiation to convert the fixed interest rate loan into a floating interest rate loan priced using LPR. If the application is successful, the interest rate should be reduced to below 5%, which can alleviate a lot of pressure for us," Ms. Wan, who lives in Chengdu, told reporters.
Banks are also about to follow up and provide services such as interest rate inquiries for existing housing loans. Agricultural Bank of China has previously stated that it will provide inquiry services through channels such as mobile banking, loan handling banks, business outlets, 95599, and Agricultural Bank of China's micro bank. Borrowers can check whether their existing housing loan interest rates meet the conditions for reduction and the extent of the reduction starting from September 15th.
Some borrowers need to "manually adjust"
Based on the adjustment rules currently announced by multiple banks, for existing floating rate housing loans that were originally issued under the first home loan interest rate policy in their respective cities and are currently priced at LPR, multiple banks will actively adjust the loan interest rates in batches according to the adjustment rules.
In addition, adjustments can also be made through the replacement of newly issued loans. For example, Industrial and Commercial Bank of China previously announced that "our bank will adjust the interest rate based on the existing personal housing loan situation by changing the interest rate level stipulated in the contract or issuing a new loan replacement. Firstly, negotiating to change the contract interest rate means that our bank will negotiate with the customer to lower the interest rate level stipulated in the loan contract. Secondly, issuing a new loan replacement means that our bank will issue a new loan, and the customer will use this loan to replace the existing first home loan." Among them, for special circumstances that require the use of a new loan replacement method, the loan service bank will contact the customer for processing.
A borrower who applied for a housing loan at Industrial and Commercial Bank of China in a certain area of Hubei Province said that he recently received a phone call from a local branch staff who issued a confirmation letter for the adjustment of the interest rate of the first personal housing loan online. He needs to sign on the mobile banking app and exchange his remaining principal for a new loan to be issued. "After successful processing, my mortgage interest rate will change from 5.33% to 4.2%, and the monthly interest will be reduced by about 260 yuan."
Subsequently, a reporter from Securities Daily called the above-mentioned handling branch, and the staff of the bank said, "Starting from September 25th, our bank will concentrate on adjusting the contract loan interest rate in batches. If we receive a call from us recently, it indicates that we do not meet the automatic reduction requirements of September 25th and need to be manually contacted in advance for manual adjustment. Currently, after screening through our bank's system, there are a large number of customers who need to be contacted by phone in advance. We are working hard to handle it and working overtime every day."
Following the collective release of the adjustment rules for stock mortgage interest rates by the six major state-owned banks on September 7th, more and more commercial banks have joined the adjustment ranks, all of which have stated that they are actively preparing for various preparations to ensure that services are provided in accordance with the requirements of the People's Bank of China starting from September 25th. In addition, multiple banks, including China Construction Bank and Industrial and Commercial Bank of China, continue to update relevant Q&A based on customer focused issues and respond to market concerns.
Yan Yuejin, the research director of E-House Research Institute, told Securities Daily that the policy of reducing the interest rates on existing housing loans has significant innovation and influence. One is to reduce the situation of early repayment of loans; The second is to benefit the majority of homebuyers, which will reduce the monthly supply of some homebuyers, thereby promoting consumption; Thirdly, this operation also indirectly controls the illegal behavior of replacing housing loans with business loans, consumer loans, etc., which helps to promote the stability of the financial market; The fourth is that this policy, combined with recent policies such as "recognizing houses but not loans" in many places, helps to enhance consumer confidence in the real estate market, and the overall market sentiment is also boosted and actively improving.
