"Can you save 800000!" The man in Hangzhou asked anxiously every day, "When will it be implemented?"? Multiple banks respond to mortgage interest rates | stock | banks

If the interest rate on my 6% stock mortgage can be lowered,

I'll exchange the saved money for a car

Yesterday morning around 9 o'clock,

Mr. Hu, born in Hangzhou after 1985, once again consulted with a bank's personal loan manager,

But no good news came.

I have been following news in this area every day these past two days,

The loan manager is also being questioned by me every day,

I am really eager to lower interest rates,

A monthly mortgage of nearly 20000 yuan plus raising two children,

It's really too difficult. " Mr. Hu said.

Indeed, whether the interest rate on existing housing loans can be lowered is probably the most concerning issue for homebuyers across the country in the past two days.

On July 14th, Zou Lan, Director of the Monetary Policy Department of the People's Bank of China, stated at a press conference of the State Council Information Office, "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 existing loans."

Many homebuyers, upon seeing the news, can't wait to know: Is the interest rate on existing mortgage loans about to start adjusting? The reporter visited multiple bank branches in Hangzhou to verify and see the latest response.

Many homebuyers have come to consult

Multiple banks have responded that they have not yet received formal notification

A few days ago, as soon as the news from the central bank came out, many high ranking homebuyers like Xiao Hu asked personal loan managers about the latest implementation of the bank.

"Standing at a high level of 6% for a mortgage like me, in the current market situation and loan interest rates, it feels like being a 'big enemy'." Xiao Hu said. Indeed, the reporter made a simple calculation for him, stating that the 3 million yuan stock mortgage requires a monthly payment of over 21000 yuan at a 6% interest rate and an equal principal and interest repayment method. If the interest rate is lowered to 4%, the same repayment method only requires a little over 18000 yuan per month. Repaying the entire loan can save a total of 800000 yuan.

No matter what kind of family, this is not a small number.

With everyone's questions in mind, on July 19th, Chao News reporters consulted customer service and loan managers of several state-owned and joint-stock banks in Hangzhou, and obtained similar answers.

The lobby manager of a branch of Industrial and Commercial Bank of China in Hangzhou said, "In recent days, there have been customers inquiring about the interest rate of existing housing loans. We have carefully explained to the customers, and currently, the bank has not received any official documents from the relevant departments. We will continue to monitor the political direction and actively communicate and coordinate. If there are relevant documents issued, we will definitely implement them as soon as possible."

On ICBC's customer service official account, the Bank has also made intelligent responses to issues related to the interest rate adjustment of existing housing loans: the Bank has paid attention to the market's news reports on the interest rate adjustment of existing housing loans, but has not yet received the official notice from the relevant departments. We will actively communicate with the regulatory authorities. If there is any formal requirement or scheme, we will follow up and implement it as soon as possible. You can pay attention to our official website, official account, etc., or consult your customer manager and loan handling bank regularly to obtain the latest information.

"Everyone is indeed very concerned about the interest rate of existing housing loans. As soon as the news from the central bank came out over the weekend, many customers came to ask me about the interest rate of existing housing loans." A personal loan manager from China Merchants Bank told Chao News reporters, "At present, we have not received a formal notice, and with a definite interest rate reduction, we will definitely implement it as soon as possible."

In addition, staff from multiple bank branches such as Agricultural Bank of China, Construction Bank of China, and Bank of Communications have all told reporters that their banks have paid attention to the central bank's statement on the interest rates of existing housing loans. From the responses of various banks, although they have not yet received formal notice to adjust the interest rates of existing housing loans, they have all stated that they will continue to monitor policy trends and timely implement them in accordance with policy requirements.

The reporter also consulted the online customer service of several banks and received similar responses.

Can the 70% discount rate of that year be reproduced?

Industry insiders analyze that there will be no one size fits all approach

"In fact, the first house I bought enjoyed a 30% discount on the interest rate of the existing mortgage, and I don't know if such a good thing will happen this time." Xiao Hu told reporters earlier that in 2009, his old and dilapidated house in the urban area of Hangzhou enjoyed the preferential interest rate of the existing mortgage, and the discounted interest rate was less than 4%.

Indeed, there have been precedents for reducing interest rates on existing housing loans. In October 2008, the People's Bank of China issued a notice on expanding the downward range of commercial personal housing loan interest rates and other related issues, expanding the lower limit of commercial personal housing loan interest rates to 0.7 times the loan benchmark interest rate. "Do you remember when the bank contacted me to sign a new agreement at the branch? I wonder if I can enjoy it again this time?"

Although mortgage customers have a strong desire to discount the interest rates of existing mortgages, industry insiders believe that a "direct discount" approach is unlikely.

The macro team of Huaxin Securities predicts that the current round of interest rate cuts for existing housing loans should not be as one size fits all as in 2008, but rather based on differentiated reductions in interest rates for existing housing loans. It is expected to gradually expand from small and medium-sized banks to state-owned large banks, just like in 2008.

A senior manager of a state-owned large bank in Zhejiang Province Branch said in an interview with a reporter from Chao News, "The central bank's statement is based on the principles of marketization and rule of law, supporting and encouraging commercial banks and borrowers to negotiate and change contract agreements independently, or to issue new loans to replace the original existing loans. I believe that there will be a process of adjusting the interest rates of existing housing loans."

The senior manager further pointed out that compared to the past, the current real estate regulation policy is "tailored to the city", and the mortgage interest rates in different cities vary greatly, so it is unlikely to have a one size fits all discount approach.

Dong Ximiao, Chief Researcher of Zhaolian, pointed out that reducing the interest rate of existing housing loans is not a "one size fits all" approach. Taking into account the demands of all parties, it is more feasible to gradually and partially lower the interest rate of existing housing loans. During the execution process, there is no need to distinguish between regions, first or second homes, fixed or floating interest rates. Various regions can use market interest rate pricing self-discipline mechanisms to convene banks to discuss and establish certain standards for implementation.

Experts suggest implementing a three tiered reduction in the interest rates of existing housing loans

Simultaneously guiding deposit interest rates to appropriately decline

In the past two years, mortgage interest rates were high, and the highest point of the first home loan interest rate in Hangzhou reached 6.3%, but now it has dropped to 4%. "Even if you wait a little longer, at least there's hope," said Xiao Hu in the previous text, looking forward to the release of detailed regulations soon to rescue his 6% interest rate on existing housing loans when he bought a house two years ago.

Dong Ximiao, a joint researcher of Zhaolian, previously believed in an interview with Chao News that according to the central bank's statement, there are two possible approaches to adjusting the interest rates of existing housing loans, namely direct and indirect reductions.

Yesterday, the reporter interviewed Dong Ximiao again, and he suggested that the implementation could be divided into three levels based on the level of mortgage interest rates: by January 1, 2023, existing mortgage loans with interest rates above 6.0% can be discounted by 85%, or reduced by 100 basis points; Existing mortgage loans with interest rates between 5.5% and 6.0% can be discounted by 10% or reduced by 60 basis points; Housing loan interest rates between 5.0% -5.5% can be discounted by 95% or reduced by 30 basis points. When lowering interest rates, the bank does not need to sign a new paper contract with the borrower. It can adopt the same approach as before when the loan benchmark interest rate was converted to LPR interest rate, which is to send information confirmation to eligible borrowers. The so-called phased approach can be tentatively set at three years, after which further research can be conducted based on actual conditions.

In addition, Dong Ximiao also suggests that the central bank can moderately use the market interest rate pricing self-discipline mechanism to guide deposit interest rates to appropriately decline, reduce the cost of bank liabilities, alleviate the pressure of narrowing bank interest rate spreads, and hedge the impact of the decline in stock mortgage interest rates on banks. Targeted reserve requirement reductions can also be carried out on some banks with significant impact to compensate for their losses. For banks, actively offering benefits can not only better fulfill social responsibilities and promote consumption, but also help retain more existing customers.

Netizen comments:

Many netizens have expressed that

The 6% interest rate is really a bit high

Some netizens also expressed that

I hope it can be implemented as soon as possible