Big news about the real estate market! Is there a bank here offering a one-year discount on existing housing loans? The response is coming!, Just now, the customer | stock | mortgage
Recently, it was reported that Industrial Bank Guangzhou Branch is offering one-year interest rate coupons to existing mortgage customers. As soon as the news came out, the market exploded.
On the morning of the 26th, Zhongxin Jingwei called several branches of Industrial Bank of China in Guangzhou as a customer. Several individual loan managers stated that there was indeed this matter, but the specific implementation is still waiting for notification.
"At present, one-year interest rate coupons are given, and the specific distribution time and discount details will need to wait for the unified issuance of documents by the backend," said a personal loan manager at a branch of Industrial Bank in Guangzhou. When asked if coupons will continue to be issued after a one-year discount period, the personal loan manager said that his personal opinion is that banks should "walk and see, it is impossible to foresee many years from now.".
The personal loan manager of another branch of Industrial Bank in Guangzhou said that the one-year interest rate coupon is a retention plan for customers who repay their loans early, and it also depends on the loan policy of the customer at that time. If it is the first home, it will not be lower than 4.2%. At present, the branch has not yet issued relevant documents.
It is understood that after the 5-year LPR decline in June, the loan interest rates for Guangzhou's first and second homes were lowered to 4.2% and 4.8%, respectively.
A person from Industrial Bank told China News Service that this measure is a marketing campaign piloted by some branches in Guangzhou and has not been widely promoted.
Zhongxin Jingwei also dialed the phone numbers of the four major banks of China Agricultural, Industrial and Construction Bank and some branches of Guangzhou Bank as a customer. The personal loan manager stated that they have not received any relevant notice regarding the adjustment of existing housing loans.
The customer manager of a branch of Agricultural Bank of China in Guangzhou said, "Recently, we have noticed news supporting customers to negotiate with banks to adjust mortgage interest rates. As for whether to implement it, we need to continue to pay attention to bank announcements."
The gap between the interest rates of existing and newly added housing loans continues to widen. According to monitoring data from Zhuge Data Research Center, the current interest rates for newly added first home loans in key 15 cities have all dropped to below 5%, with the lowest dropping to 3.7%. However, the interest rates for existing first home loans are generally above 5%, with Nanjing and Wuxi even reaching over 6%. Cities such as Hangzhou, Nanjing, Wuxi, and Wuhan have added LPR points exceeding 100BP, and the highest difference between new and old interest rates is 2.3%.
Wang Yuchen, Director and Lawyer of Beijing Jinsui Law Firm, told China News Service that distributing interest rate coupons is a good method to indirectly lower mortgage interest rates, which is consistent with the previous statements of the central bank. This behavior is not considered a violation of regulations.
Dong Ximiao, Chief Researcher of Zhaolian, analyzed in an interview with China News Service that issuing loan interest rate coupons may mainly be a marketing strategy, and banks may hope to reduce the number of early repayment and "re lending" through this approach. Now Internet banks and consumer finance companies will also launch some interest rate reduction coupons and coupons when they issue loans, in a somewhat similar way.
Dong Ximiao believes that distributing interest rate coupons to existing customers can be attempted as a way to reduce their mortgage interest expenses and partially lower their mortgage interest rates. More banks should be supported to explore and introduce other new means. But it will not become mainstream, nor will it be an important way to lower the interest rates on existing mortgage loans. Distributing interest rate coupons will face several issues, such as the recipients of the coupons, what are the distribution conditions, and how much interest rate can be reduced. If not distributed to all customers, other customers may have objections, and the bank needs to handle the relevant issues well.
Dong Ximiao suggested that the overall principles for adjusting the interest rates of existing housing loans in banks be agreed upon through a market interest rate pricing self-discipline mechanism; It is recommended that each bank's head office introduce specific plans to clarify the conditions, standards, and processes for "direct reduction" and "indirect reduction". Where conditions permit, greater support can be provided to borrowers to convert commercial housing loans into provident fund loans, in order to further reduce the interest rate of existing housing loans.
Jingwei Quick Review: Adjustment of Existing Housing Loans, Banks Should Take Action
Recently, Zou Lan, Director of the Monetary Policy Department of the People's Bank of China, stated at a press conference held by the State Council Information Office that "in accordance with the principles of marketization and rule of law, we support and encourage commercial banks and borrowers to independently negotiate changes to contract agreements, or to issue new loans to replace the original deposit loans.".
This statement is also a response to the market's call for a decrease in interest rates on existing mortgage loans in the past year or so. Since last year, discussions about "early repayment of loans" have repeatedly been trending, and the issues reflected behind this are worth paying attention to. An obvious fact is that there is a significant interest rate difference between the newly issued mortgage interest rate and the previously issued loan interest rate.
Nowadays, the interest rate for newly issued first home loans in some cities has dropped to 3.6%. Despite multiple declines in LPR over a period of 5 years, due to some lenders choosing fixed interest rates or floating bonus points, the interest savings enjoyed by fixed bonus points are relatively limited, resulting in many existing housing loan interest rates still above 5%. If calculated at 3.6% and 5%, taking a loan of 1 million yuan, with a term of 30 years and equal principal and interest repayment as an example, the difference in monthly payments between the two is 761 yuan, and the difference in one year is 9132 yuan.
As banks continue to lower interest rates on new loans, especially in a sluggish real estate market, many people believe that their loans are not cost-effective. Moreover, the repricing date for most lenders is set on January 1st each year, and the lag in adjusting mortgage interest rates also prevents many lenders from enjoying the benefits brought about by the LPR decline in a timely manner.
Therefore, some lenders choose to repay their loans in advance and reduce their debts. This proactive deleveraging will reduce the working capital in the hands of residents, thereby reducing consumption and also affecting the family's ability to resist risks. Some people choose to take risks and engage in illegal activities such as replacing high interest mortgage loans with low interest loans such as business loans and consumer loans.
The decrease in interest rates on existing housing loans is a great news for lenders. The direct impact is to reduce the interest burden on residents, as they have more funds in their hands to convert into actual purchasing power, which is conducive to expanding domestic demand and boosting consumer confidence.
In the adjustment of existing housing loans, the central bank has issued support and encouragement, and the next "pressure" will be on banks. At present, multiple banks have not received formal notification yet. It is not difficult to understand that banks also have their own considerations. After all, personal housing loans account for a relatively high proportion of bank loan business, and banks are also enterprises. Starting from their own profits, reducing the interest rate of existing housing loans has a significant impact on bank interest income, and banks will lose a large amount of profits. Therefore, the motivation for banks to lower themselves is insufficient.
But does lowering the interest rate on existing housing loans really have no benefit for banks? Let's try a different approach. Personal housing loans have always been a high-quality business for banks. If residents continue to repay loans in advance, the bank's personal housing loan balance will also decrease, which will also affect the bank's profits. Moreover, many banks have received fines for operating loans, consumer loans, and other loans flowing into the real estate market. Therefore, it is better to open the main door and guide lenders to replace their existing housing loans with new ones under the premise of compliance.
At present, the adjustment of existing housing loans has only taken a small step forward. How to make banks benefit the people without affecting bank finances, there are still a few key steps to take. This is inseparable from the further reduction of the debt side costs of commercial banks, as well as the need for relevant departments to coordinate and plan policies. The obstacles and obstacles are long, and the adjustment of existing housing loans is a crucial step for banks, lenders, and even the Chinese economy. How to reduce the loan repayment burden of lenders while minimizing the pressure on bank operations is a test of the wisdom of banks and all parties involved.
