How much can a mortgage save?, It's all announced! Calculate, Beijing, Shanghai, Guangzhou, and Shenzhen
On the evening of August 31st, the People's Bank of China and the State Administration of Financial Supervision jointly issued a notice on matters related to reducing the interest rates of existing first home loans. The document clearly states that starting from September 25, 2023, borrowers of commercial personal housing loans for their first existing housing can apply to the lending institution for replacement, and the increase in LPR shall not be lower than the lower limit of the interest rate policy for commercial personal housing loans for the first housing in the city where the original loan was issued.
On September 1st, in order to ensure the smooth implementation of the adjustment of interest rates for existing housing loans, branches of the central bank successively announced on their official websites the relevant information on the self-discipline lower limit of interest rates for the first commercial personal housing loan. As of press release, according to incomplete statistics, the self-discipline mechanism of market interest rate pricing in Shanghai, Beijing, Shenzhen, Fujian, Henan, Jiangxi, Hunan, Jilin, Gansu, Xizang, Inner Mongolia, Guizhou and other places has released announcements through the official website of the branches of the People's Bank of China, disclosing the implementation of the lower limit of interest rates for first home loans in local or provincial cities in recent years. The lower limit of the national first home loan interest rate policy is LPR from October 2019 to May 2022, and LPR-20 basis points from May 2022 to present.
Beijing
The official website of the Beijing Branch of the People's Bank of China announced today that on September 1st, the self regulatory mechanism for pricing market interest rates in the Beijing region announced that from October 2019 to present, the lower limit of interest rates for the first commercial personal housing loan in the Beijing region is the loan market quoted interest rate for the corresponding period plus 55 BP.
![How much can a mortgage save?, It's all announced! Calculate, Beijing, Shanghai, Guangzhou, and Shenzhen](https://a5qu.com/upload/images/2ab54a63196e579a1a8faf99686fd2d0.jpg)
Shanghai
The official website of the Shanghai Branch of the People's Bank of China announced today that on September 1st, in order to ensure the smooth implementation of the adjustment of interest rates for existing housing loans, the self-discipline lower limit of interest rates for the first commercial personal housing loan in Shanghai has been released. The lower limit of interest rates implemented in Shanghai from July 24, 2021 to present is LPR+35BP.
Guangdong
On September 1st, the Guangdong Branch of the People's Bank of China announced the historical adjustment of the lower limit of interest rates for first home loans in various cities within Guangdong Province since October 2019.
![How much can a mortgage save?, It's all announced! Calculate, Beijing, Shanghai, Guangzhou, and Shenzhen](https://a5qu.com/upload/images/269289916d0c51c866cd65263d40ccaf.jpg)
Shenzhen
The Shenzhen Branch of the People's Bank of China announced today the historical adjustment of the lower limit of interest rates for first home loans in Shenzhen. From May 15, 2022 to present, the lower limit of interest rates in Shenzhen is LPR+30BP, and the lower limit of national interest rates is LPR-20BP.
The following table shows preliminary statistics on the inconsistency with the lower limit of the national first home loan interest rate policy. The specific data published by various branches of the People's Bank of China shall prevail.
Table: Inconsistency between the lower limit of interest rates for first home loans in various cities and the national average since 2019
![How much can a mortgage save?, It's all announced! Calculate, Beijing, Shanghai, Guangzhou, and Shenzhen](https://a5qu.com/upload/images/be4485b23d2188a5d938ed6ae6241bfb.jpg)
According to regulatory sources, after the adjustment of interest rates for commercial personal housing loans for the first available housing, the financial burden of homebuyers will significantly decrease, with an average decrease of about 0.8 percentage points in interest rates. It is estimated that the clients involved in this adjustment may exceed 40 million, and the loan scale involved in the adjustment may reach 25 trillion yuan. 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 interest expenses of over 5000 yuan per year.