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Five major banks: unified conversion of personal mortgages to LPR pricing from August 25
August 13, 2020 03:10 Securities Times
Sina Finance
Original title: The Big Five: From August 25th, the pricing of individual mortgages will be converted to LPR
On August 12, the five major state-owned banks of ICBC , China Construction Bank, Agricultural Bank of China, Bank of China and Postal Savings Bank of China( 4.660 , 0.03 , 0.65% ) announced at the same time that they will apply for personal housing loans within the scope of batch conversion starting on August 25. Relevant rules are uniformly adjusted to LPR (loan market quoted interest rate) pricing method.
The announcement also made it clear that after the batch conversion is completed, if there is any objection to the conversion result, it can be transferred back through relevant channels or negotiated with the loan handling bank before December 31, 2020 (inclusive).
The central bank previously announced that in order to further deepen the LPR reform, commercial banks should formally switch the pricing benchmarks of stock loans with floating interest rates from March 1, 2020. In principle, the switch of the pricing benchmarks for stock loans should be made on August 31, 2020. All completed a few days ago.
According to the conversion rules of the personal housing loan pricing benchmark, there are two options for the converted pricing benchmark: LPR or fixed interest rate. The specific choice can be determined through negotiation between the borrower and the bank. However, the borrower has only one option and cannot switch again after the conversion. If the stock floating interest rate loan is converted to a fixed interest rate, the interest rate level after the conversion shall be determined through negotiation between the borrower and the lender. Among them, the interest rate level after the conversion of the commercial personal housing loan shall be equal to the latest execution interest rate level of the original contract. The pricing benchmark for stock floating-rate loans is converted to LPR. Except for commercial personal housing loans, the additional value is determined by the borrower and lender through negotiation. This article is also to ensure that the personal housing loan interest rate remains unchanged before and after the contract switch.
After the existing commercial personal housing mortgage loan pricing benchmark is switched to LPR, there will be no change in personal interest expenses for at least the next year. But it should be noted that the newly issued housing loan interest rate can be adjusted once a year based on the latest LPR quote. Many analysts pointed out that in the long run, the global low interest rate environment will continue in the long term, which may be beneficial to reducing borrowers' comprehensive interest expenses. (Sun Lulu)
https://finance.sina.com.cn/roll/202...n8339756.shtml
August 13, 2020 03:10 Securities Times
Sina Finance
Original title: The Big Five: From August 25th, the pricing of individual mortgages will be converted to LPR
On August 12, the five major state-owned banks of ICBC , China Construction Bank, Agricultural Bank of China, Bank of China and Postal Savings Bank of China( 4.660 , 0.03 , 0.65% ) announced at the same time that they will apply for personal housing loans within the scope of batch conversion starting on August 25. Relevant rules are uniformly adjusted to LPR (loan market quoted interest rate) pricing method.
The announcement also made it clear that after the batch conversion is completed, if there is any objection to the conversion result, it can be transferred back through relevant channels or negotiated with the loan handling bank before December 31, 2020 (inclusive).
The central bank previously announced that in order to further deepen the LPR reform, commercial banks should formally switch the pricing benchmarks of stock loans with floating interest rates from March 1, 2020. In principle, the switch of the pricing benchmarks for stock loans should be made on August 31, 2020. All completed a few days ago.
According to the conversion rules of the personal housing loan pricing benchmark, there are two options for the converted pricing benchmark: LPR or fixed interest rate. The specific choice can be determined through negotiation between the borrower and the bank. However, the borrower has only one option and cannot switch again after the conversion. If the stock floating interest rate loan is converted to a fixed interest rate, the interest rate level after the conversion shall be determined through negotiation between the borrower and the lender. Among them, the interest rate level after the conversion of the commercial personal housing loan shall be equal to the latest execution interest rate level of the original contract. The pricing benchmark for stock floating-rate loans is converted to LPR. Except for commercial personal housing loans, the additional value is determined by the borrower and lender through negotiation. This article is also to ensure that the personal housing loan interest rate remains unchanged before and after the contract switch.
After the existing commercial personal housing mortgage loan pricing benchmark is switched to LPR, there will be no change in personal interest expenses for at least the next year. But it should be noted that the newly issued housing loan interest rate can be adjusted once a year based on the latest LPR quote. Many analysts pointed out that in the long run, the global low interest rate environment will continue in the long term, which may be beneficial to reducing borrowers' comprehensive interest expenses. (Sun Lulu)
https://finance.sina.com.cn/roll/202...n8339756.shtml