Authoritative, how to adjust the interest rate of the first home loan in stock! Guide to this interest rate | stock | authority
China Securities News: The interest rate for first-time home loans in stock is about to decrease!
On August 31, the People's Bank of China and the State Administration of Financial Supervision and Administration issued a notice on matters related to reducing the interest rate of existing first home loans, clarifying the relevant implementation rules.
For eligible existing housing loans, starting from September 25, 2023, the borrower can apply to the lending bank to issue a new loan to replace the existing first home loan, or negotiate a change in the contract interest rate level. Before September 25th, the bank will carry out preparation work such as revising the contract text, transforming and adjusting the system, identifying customers that meet the standards, and promptly announce the processing process and application materials that need to be prepared to the borrower.
So, how can the interest rate of first-time home loans be lowered? This guide is ready!
What types of existing housing loans can be applied for to lower interest rates?
Type 1: Housing loans that meet the first housing standard in the city where the original loan was issued
Type 2: Commercial personal housing loans for other existing housing that the borrower's current actual housing situation already meets the first housing standard in the city where they are located
When the house was purchased, the family did not have any other housing, but due to the local government's policy of "recognizing the house and recognizing the loan", the loan for this house was processed as a second house loan. Now, the local government implements the policy of "recognizing the house but not recognizing the loan".
When a house is purchased, it is not the only housing for the family, but other housing is sold later through transactions or other means. This housing is called the only housing for the family and the local government implements the policy of "recognizing the house but not the loan".
How to apply for a reduction in the interest rate of existing first home loans?
The first method: Starting from September 25, 2023, borrowers of commercial personal housing loans for the first existing housing can apply to the lending financial institution, which will issue new loans to replace the commercial personal housing loans for the first existing housing.
It can be understood as: assuming that Xiao Wang's mortgage is in Bank A, after September 25th, Xiao Wang can apply to Bank A to replace the existing stock mortgage with the newly issued loan.
The second method: Starting from September 25, 2023, borrowers of commercial personal housing loans for their first existing housing can also apply to the lending financial institution to negotiate a change in the interest rate level agreed upon in the contract.
It can be understood as: assuming that Xiao Wang's mortgage is in Bank A, after September 25th, Xiao Wang can apply to Bank A to negotiate a change in the interest rate of the existing stock mortgage.
It should be noted that according to regulatory sources, from the perspective of the adjustment results, as the People's Bank of China has already clarified the specific requirements for adjusting the interest rates of existing housing loans, that is, it needs to comply with the lower limit policy of local housing loan interest rates when loans are issued, it is expected that there will not be a significant difference in the interest rate levels after these two methods of adjustment.
How much can the interest rate of first-time housing loans be lowered?
This notice requires that the adjusted interest rate for existing housing loans must comply with the local real estate policy at the time of the original loan issuance, which is not lower than the policy lower limit of the housing loan interest rate in the city at that time.
According to regulatory sources, on the one hand, this was to maintain the authority of the lower limit of the mortgage interest rate policy at that time; On the other hand, it is also to ensure the fairness of policies, ensure a smooth and orderly adjustment process, and avoid problems such as differences in interest rate levels due to different adjustment times for existing mortgage interest rates.
What are the specific ways for customers to negotiate with banks to reduce the interest rate on existing first-time home loans?
It is understood that after the release of this notice, the People's Bank of China will urge banks to issue a notice as soon as possible to reduce the interest rate of their existing first home loans, clarifying the specific arrangements for applying to adjust the interest rate level or issuing new loan replacements. The borrower can proceed according to the announcement of the lending bank.
At the same time, the People's Bank of China encourages banks to adopt a batch adjustment approach to provide more convenient services for borrowers.
How much interest can be saved by reducing the interest rate on existing first-time home loans?
According to regulatory sources, after adjusting the interest rates on existing first-time home loans, the financial burden of over 40 million households and billions of residents will significantly decrease, with an average decrease of about 0.8 percentage points.
Taking a stock mortgage of 1 million yuan, with a 25 year term and a original interest rate of 5.1% as an example, assuming the mortgage interest rate drops to 4.3%, it can save borrowers over 5000 yuan in interest rate expenses annually.