The four major banks have clarified the adjustment of interest rates for existing first-time housing loans. Loans | interest rates | adjustments
On September 7th, Xinhua News Agency in Beijing announced on September 7th that the four major state-owned commercial banks, namely Electrician, Agricultural, China, and Construction, would clarify the relevant matters regarding the adjustment of interest rates for first-time housing loans. They would provide answers on the adjustment scope, adjusted interest rate levels, and adjustment methods, and respond promptly to customer concerns.
According to the announcement of the four major banks, the scope of this adjustment is: commercial personal housing loans for the first home that have been issued before August 31, 2023, and those that have signed contracts but have not been issued. If the loan disbursement or contract signing does not meet the first housing standard, but currently meets the first housing loan policy in the city, it also meets the scope of this adjustment.
The four major banks have clarified the adjustment rules, and the adjusted interest rate level is related to the loan disbursement time and the lower limit of the first home loan interest rate policy in the city.
According to the announcement, floating rate loans issued before October 8, 2019, which have been converted to market quoted interest rate pricing, as well as loans issued from October 8, 2019 to May 14, 2022, have a minimum interest rate that can be adjusted to the corresponding period LPR without adding points. If the lower limit of the first home loan interest rate policy in the city where the loan is issued is higher than the lower limit of the national policy, it shall be implemented according to the lower limit of the local first home loan interest rate policy at the time of loan issuance.
For those that have been issued from May 15, 2022 to August 31, 2023 or have signed contracts but have not been issued, the minimum interest rate can be adjusted to the corresponding period LPR minus 20 basis points; If the lower limit of the first home loan interest rate policy in the city where the loan is issued is higher than the lower limit of the national policy, it shall be implemented according to the lower limit of the local first home loan interest rate policy at the time of loan issuance.
![The four major banks have clarified the adjustment of interest rates for existing first-time housing loans. Loans | interest rates | adjustments](https://a5qu.com/upload/images/2a1635c0e6b9fc1d96bd3003f1b5724b.jpg)
It is worth noting that in any case, if the loan interest rate is lower than the national lower limit, the bank will not make any adjustments. For loans that initially chose benchmark interest rate pricing and fixed rate loans, banks have indicated that they can apply for conversion to floating rate loans priced using LPR, and then adjust and execute them according to the floating rate.
This time, the four major banks mainly adopt the method of changing the contracted interest rate level. Most banks will take the initiative to reduce the interest rate in bulk from September 25, 2023, without the need for customers to apply. But if the customer needs to issue a new loan replacement, or in special circumstances such as "second installment to first installment", they need to submit a written application to the loan handling bank.
All four major banks have stated that they do not charge any fees during the process of adjusting the interest rate for the first personal housing loan in stock. If you have any questions, you can consult the loan handling agency or call the customer service hotline.