Is it a bit difficult to understand the policy of reducing existing housing loans? A few typical cases tell you how to reduce and whether it can be reduced

Release time:Apr 16, 2024 04:58 AM

On 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 rate of first-time housing loans in stock. The Notice specifies that starting from September 25, 2023, borrowers of commercial personal housing loans for their first existing housing can apply to financial institutions to issue new loans in exchange for commercial personal housing loans for their first existing housing.

Although the policy window for adjusting the interest rates of first-time housing loans has been opened, people still have some doubts about whether they can enjoy the policy benefits and how much benefits they can enjoy, and discussions in the market are gradually increasing.

Which mortgage loans can be adjusted? What is the adjustment range? There are several main questions in the current market:

1. Can my current second home be used as the first home loan to lower the interest rate if I refuse to accept the loan?

2. Can I lower the interest rate if my mortgage occurs before the LPR conversion?

3. The LPR markup in my city has changed multiple times. Which one should I use as a benchmark to lower the interest rate?

4. Can the fixed interest rate be adjusted this time?

Is it a bit difficult to understand the policy of reducing existing housing loans? A few typical cases tell you how to reduce and whether it can be reduced

Who can apply?

Firstly, we need to clarify which types of existing housing loans can be applied for and interest rates can be lowered?

One is: a mortgage that meets the first housing standard in the city where the original loan was issued.

The second is: the borrower's current actual housing situation has already met the standards for the first housing in their city, and other commercial personal housing loans for existing housing.

For example, when purchasing a house, 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 the house was processed as a second house loan. Now, the local government implements the policy of "recognizing the house but not recognizing the loan".

For example, when a house is purchased, it is not the only housing for the family, but other housing is later sold through transactions and other means. This housing becomes the only housing for the family and the local government implements the policy of "recognizing the house but not the loan".

What kind of situation are you in when you take your seat according to your number?

After identifying the types of existing housing loans that can be lowered, let's take a look at how much interest rate can be lowered.

Due to the background of "housing is for living, not for speculation" and the implementation of policies tailored to the specific situation of the real estate market, different regions have introduced differentiated policies, resulting in different actual loan interest rates. For example, the lower limit of the policy interest rate implemented by most cities before 5 years in 2022 is LPR, and some cities have added or subtracted points based on the actual situation on the basis of LPR.

Based on this, First Financial has sorted out several typical cases for everyone to refer to based on their own actual situation.

Case 1: In January 2020, Ms. Wu purchased her first property in Shanghai, and the mortgage was purchased according to the lower limit of the execution interest rate LPR-15BP in Shanghai in January 2020. However, since then, the real estate situation in Shanghai has changed, and the policy lower limit has become LPR-10BP. Currently, it is LPR+35BP. In this situation, how can Ms. Wu adjust her existing mortgage?

Answer: As Ms. Wu purchased the property in January 2020, compared to the lower limit of interest rates implemented in Shanghai at that time, Ms. Wu's mortgage interest rate was already the lowest at that time. According to the policy, it cannot be lower than the lower limit at that time, and Ms. Wu cannot adjust the mortgage interest rate.

Case 2: Ms. Peng, a resident of Beijing, purchased her first home in July 2019, and the mortgage interest rate was 10% higher than the benchmark interest rate at that time, which was 5.39%. After the LPR conversion in October 2019, Ms. Peng's mortgage interest rate was LPR+59BP=5.39%. Since October 2019, the lower limit of interest rates implemented in Beijing has always been LPR+55BP. Can Ms. Peng lower the interest rate for first home loans, and how much?

Answer: The benchmark interest rate before the LPR reform in 2019 was 4.9%. Ms. Peng's mortgage interest rate at that time was 5.39%. Currently, Ms. Peng's mortgage interest rate is LPR+55BP=4.75%. Since the adjusted interest rate level also needs to meet the lower limit of the first home loan interest rate policy in the city where the original loan was issued, Ms. Peng needs to refer to the lower limit of the policy interest rate in Beijing at that time for comparison.

Due to the fact that most of the housing loan interest rates have been converted to LPR markup after the LPR reform, it is expected that banks will also adjust the markup on LPR for existing housing loans, provided that it is not lower than the policy lower limit in Beijing at that time. The specific adjustment range will need to be announced by the bank.

Case 3: Mr. Guo, a Beijing resident, replaced his property in February 2020, which was restricted by Beijing's housing and loan policies. His mortgage interest rate was LPR+115BP=5.9%. At that time, the lower limit of the interest rate for second home loans was LPR+105BP=5.8%. In recent years, the LPR interest rate has been continuously lowered, and currently his loan interest rate is LPR+115BP=5.35%. If Beijing's policy of recognizing houses but not recognizing loans can be implemented, can Mr. Guo lower his mortgage interest rate, and how much?

Answer: After the implementation of the policy of recognizing houses but not loans in Beijing, Mr. Guo's exchanged property can be used as the first home. According to the lower limit of the interest rate for the first home implemented in Beijing in February 2020, which is LPR+55BP, Mr. Guo can adjust the loan interest rate of the house to no less than LPR+55BP. If calculated based on the current LPR level, Mr. Guo's loan interest rate can be as low as 4.75%.

Case 4: Ms. Ma, a resident of Shanghai, bought her first home in 2017 with a mortgage interest rate of 4.41%. In October 2019, the LPR was converted, and Ms. Ma chose a fixed interest rate method instead of anchoring the LPR. Can Ms. Ma lower the loan interest rate for her first home this time? How much is adjusted?

Answer: Users who initially chose a fixed interest rate can also negotiate with the bank to adjust the interest rate level, and the adjusted interest rate level must also meet the lower limit of the first home loan interest rate policy in the city where the original loan was issued.

In recent years, LPR has been continuously lowered. Currently, the first home loan interest rate in Shanghai is LPR+35BP=4.55%, but Ms. Ma's mortgage interest rate of 4.41% is already the lowest, referring to the lower limit of interest rates implemented in Shanghai at that time. So Ms. Ma is unable to lower the mortgage interest rate this time.

Case 5: Mr. Li, a resident of Shenzhen, purchased his first home in February 2020. At that time, his mortgage interest rate was a fixed rate of 5.3%. Can Mr. Li lower the loan interest rate for his first home this time? How much is adjusted?

Answer: For Mr. Li, the lower limit of the interest rate policy implemented in Shenzhen during the issuance of housing loans is LPR+30BP=5.05%. Therefore, Mr. Li can lower the interest rate from the original 5.3% level to 5.05%, but the specific adjustment amount needs to be negotiated with the lending bank at that time.

It should be noted that not everyone can meet the reduction criteria, as this policy mainly targets two situations: first, the rigid demand for "housing and loan recognition" that meets the first home standard after adjustment; Secondly, in recent years, the interest rates issued by banks for first-time home loans have been significantly higher than the lower limit of local policies.

In addition, regarding the statement in the "Notice" that "the adjusted stock mortgage interest rate must comply with the local real estate policy at the time of loan issuance, that is, not lower than the lower limit of the first home mortgage interest rate policy in the city where the loan is issued." Currently, Beijing, Shanghai, Shenzhen and other places have issued historical adjustments to the lower limit of the local first home mortgage interest rate, and homebuyers can compare and calculate based on their own situation.

Two women were stabbed to death and reported to have committed a crime 4 days before the follow-up visit for schizophrenia. Suspect of a bloody murder case in a Hong Kong shopping mall appeared in court today. Male | Last Friday | Murder case

According to Hong Kong's Wen Wei Po, a bloody knife stabbing case occurred at Hollywood Square in Diamond Hill last Friday. The police arrested a 39 year old man on suspicion of stabbing two young women, one of whom was stabbed over 30 times. The suspect appeared in the Kwun Tong Magistrates Court this morning. The police at the Kwun Tong Magistrate's Court temporarily charged the suspect with two counts of murder last Sunday. The suspect appeared in court this morning at the Kwun Tong Magistrate's Court. Acting Chief Magistrate Zheng Jihang, after listening to the opinions of both the prosecution and defense, decided to postpone the hearing for two weeks until 9:30 am on June 19th, waiting for two psychiatric expert reports to be obtained. The defense did not object. Zheng Jihang approved the application, and the defendant needs to be temporarily detained at Xiaolan Mental Hospital. When the suspect appeared in court, he wore black framed glasses, a light gray shirt, and camouflage green shorts, and was able to answer the judge's questions normally. accordingly

Currently, the highly anticipated summer harvest work in Henan has shifted its focus to the northern region of Henan. According to the Henan Daily client, on June 4th, Lou Yangsheng, Secretary of the Henan Provincial Party Committee, presided over a special video scheduling meeting on the "Three Summers" work in the province, listened to the situation report, analyzed and judged the situation, and arranged and deployed the next steps of work. Governor Wang Kai made specific arrangements. On the evening of May 31, 2023, in Xiafutou Village, Xuliang Town, Boai County, Jiaozuo, Henan Province, villagers braved light rain in the wheat fields to harvest wheat. Visual China Map Lou Yangsheng pointed out that the current summer harvest battle in the province has entered the decisive stage. Doing a good job in summer harvest in northern Henan Province is related to the summer grain yield and seed safety. We should focus on seizing opportunities and make every effort to organize the wheat harvesting work in the northern Henan region, minimize losses, and protect the interests of farmers to the greatest extent possible. Accurate forecasting is essential

Xinhua All Media+| Welcome home! What innovative technologies are protecting the return journey of Shenzhou 15? Spaceship | Shenzhou | Technology

On June 4th, the return capsule of the Shenzhou-15 manned spacecraft successfully landed at the Dongfeng landing site. Astronauts Fei Junlong, Deng Qingming, and Zhang Lu all safely and smoothly exited the spacecraft, and the Shenzhou-15 manned flight mission was a complete success. What innovative technologies are there to safeguard the return journey of Shenzhou 15 in this mission? On June 4th, the return capsule of the Shenzhou-15 manned spacecraft successfully landed at the Dongfeng landing site. Xinhua News Agency reporter Lian Zhen photographed that "the sky and the ground" ensure the high-precision return of spacecraft. For the Shenzhou series spacecraft, the return and re-entry GNC technology is directly related to the life safety of astronauts. Taking the success of this return mission as a symbol, China has comprehensively upgraded its GNC system since the Shenzhou-12 manned spacecraft, which features autonomous rapid rendezvous and docking, autonomous adaptive prediction and re-entry return guidance, and has completed a comprehensive update and replacement

The Chinese naval fleet has arrived! Assembly | Navy | Chinese Fleet

At noon today, a Chinese naval fleet consisting of Zhanjiang and Xuchang ships arrived at the assembly area of the "Comodo-2023" multinational maritime joint exercise. It is understood that the assembly anchorage for this exercise is 3 nautical miles long and 1.5 nautical miles wide, capable of anchoring up to 50 ships. Naval vessels from various countries participating in the exercise will also arrive at the anchorage today to complete the assembly of the "Komodo 2023" multinational maritime joint exercise, which is held every two years by the Indonesian Navy. This year is already the fourth edition of the exercise. The exercise will be held from June 5th to 8th in the city of Jakarta, South Sulawesi Province, Indonesia, including the port and sea phases. In the coming days, participating navies from various countries will participate in ship reading style search and rescue exercises, maritime interception and damage management exercises, aerial exercises, and other course objectives exercises

New comment: Donkey like "morale" limit pulls US debt "bomb" fuse hard to dismantle US | debt | morale

On the evening of June 1st, the US Senate passed a bill on the federal government's debt ceiling and budget, and the flame of the US debt bomb was temporarily extinguished at the last moment. The two parties in the United States have staged an extreme tug of war over the US debt bomb. Some experts believe that the US debt crisis is the result of the reckless politics promoted by the US dollar hegemony, and the underlying cause of this crisis is the highly polarized political system of the US. Since the end of World War II, the US Congress has adjusted the debt ceiling more than a hundred times. The recurring debt crisis will not only have a catastrophic impact on the US economy and people's livelihoods, but also continuously erode the value of US dollar assets such as government credit and US bonds, bringing significant and far-reaching impacts to the global economic landscape. 【

Important news

The boundless scenery is always new-General Secretary Xi Jinping guides the construction of digital society, review and development | education | society Unswervingly Promote and Improve the Comprehensive and Strict Party Governance System Xi Jinping | Strict Party Governance | System "Seeking Truth" magazine published an important article by General Secretary Xi Jinping "Improving the Comprehensive and Strict Party Governance System and Promoting the New Great Project of Party Building in the New Era to Develop in Depth" State | President | Xi Jinping General Secretary's thoughts are still in my mind, learning from the season | building a modern marine ranching power | developing | the ocean Leading the way with a heavy load | More vitality in opening up to the outside world, stronger momentum in science and technology innovation - Strong development momentum in the ancient capital of Xi'an Automotive | New energy | Opening up to the outside world Chinese Stars | 210 Seconds Review of the Victory of Aerospace Heroes on their Way Home! Flying | Divine Boat | Hero

Political situation

What are the remaining obstacles in the investigation and undercover investigation by the law enforcement inspection team of the Municipal People's Congress? This work evaluates that Shanghai has always been at the forefront of garbage classification | garbage | law enforcement Looking forward to the global high-quality engineering enterprise layout in Shanghai, Mayor Gong Zheng meets with the President elect of the World Federation of Engineering Organizations | Global | Quality To jointly discuss and deepen cooperation and exchange in counterpart support, Chen Jining and Nie Zhuang led a discussion on the work of the party and government delegation in Kashgar, Xinjiang Chen Jining and Gong Zheng jointly inspected and discussed, jointly serving the overall development of the country! Yin Li and Yin Yong led a Beijing delegation to Shanghai to inspect the delegation's development and overall situation Contributed about 1/4 of the GDP of Shanghai, currently with 70000 foreign-funded enterprises in Shanghai. The Youth Association of Shanghai Foreign Countries has helped each other in terms of membership and GDP The representative group of Yangpu Street helps to alleviate public concerns, with garbage belts turning back into green belts and street lights lighting up again in residential areas | Representative | Yangpu

Economics

What else can I rely on for growing vegetables?, Agricultural Experiment of a Group of Young People: Lettuce without Heaven or Earth | Physical Strength | Agriculture Very few have been rejected at once... Shanghai Automotive Engine Factory has presented 49 automotive grade chips to solicit domestic alternatives to SAIC | Netherlands | United States | Lingang Pujiang International Science and Technology City | Substitution | Import | Localization | Automotive grade chips Is there still a "flower head" in domestic blockchain?, No Bitcoin, First Blockchain Technology National Standard Released Web3.0 | Blockchain | Domestic These top domestic and international beverage cold drink brands have rolled up like this, in order to welcome the overall recovery of the consumer market as a brand | Sugar Tea | International Making a dojo inside a snail shell allows the city's scraps to make a comeback. This European style garden in Shanghai used to be a "stone" on the road. Shanghai Pocket Park | Sparrow Little Dirty | Making a dojo inside a snail shell 23 industry associations (business and academic) in the Yangtze River Delta have established alliances to provide trade adjustment assistance, and the foreign trade situation is complex and severe. | Trade | Alliance

Regional situation

Shanghai Charity Foundation Successfully Issued First Electronic Donation Receipt Community | Activity | Shanghai Charity Foundation Carry out normalized social theater performance activities, and the "hometown of drama" Songjiang Xinbang will resume stage and social theater | Drama | Songjiang Xinbang How to promote and replicate the "near rail model"? Changfeng Xincun Street Building Party Building 4.0 Model | Building Committee | Jintie The largest single scale near zero energy consumption building in Shanghai will be built, and the construction area of the first batch of "Jiabao Smart Bay" in Jiading New City will start | plot | first batch Jing'an creates "one park, one theme", and the art exhibition "Painting Life and Coloring" opens at Jing'an Sculpture Park to experience | Art | Jing'an The highlights of the Xuhui exhibition area at the first Carbon Expo are frequent, including waste plastic recycling and environmental protection roads, Shanghai's first near zero carbon community, low-carbon | green | community

Viewpoint

"White carbon" is on the rise, and there are many colors of carbon? This is definitely not sensationalism, carbon dioxide emissions, color Where does the trend go: "China-Chic" cultural and creative market status, development trend and innovation path Cultural and creative | Chinese goods | China-Chic He demonstrated the essence of the revolutionary ideology and spiritual qualities of communists, and during his brief 40 years of life, Secretary Yu Xiusong's ideology What is the relationship between the "four major functions" and the "five centers"? Accurately grasp these two key elements | functions | relationships Why mention "Clean Your Plate Campaign" again?, Today's life | leftovers | CDs To find the balance between digitization and greening, experts say that excessive digitization may increase energy consumption. Digital | Green | Digitization

Vision

Celebrating the Second Anniversary of the US Army's Withdrawal, [Looking at the World] Afghan Taliban Armed Security Personnel March Typhoon | Taliban | Afghanistan It's more convenient to buy book exhibition tickets offline today, including ID card, cash, and old-fashioned mobile phones. Lu Xun | Book Exhibition | Mobile Phone These spaces create multiple interactive viewing experiences for citizens and tourists, playing with weekend aesthetics | Design | Citizens The opening ceremony will continue as usual. [Looking at the World] The opening match of the Women's World Cup. A shooting occurred in Auckland City, resulting in three deaths. The World Cup | Event | Opening match World Blood Donor Day: Oriental Pearl TV Tower, Shanghai center and other city landmarks light up Life Red World Blood Donor Day Take the artwork home for a thousand yuan? Many people come to this exhibition for their "treasure hunting" works | gallery | to take home