The existing mortgage interest rates have been officially lowered. The details that need to be paid attention to are the main adjustment points and two adjustment methods.

1. Main adjustment points for additions and subtractions

The Central Bank and the State Administration of Financial Supervision have clarified that the interest rate level of new loans shall be determined independently by financial institutions and borrowers through independent negotiation, but shall be quoted in the loan market. The points added to the interest rate (LPR) shall not be lower than the lower limit of the interest rate policy for commercial personal housing loans for first homes in the city where the original loan was issued.

China Construction Bank further explained that the current mortgage interest rate is determined by adding or subtracting points on the basis of LPR. This adjustment does not involve LPR, but mainly adjusts the plus and minus points. In addition, China Everbright Bank proposed that customers with fixed interest rates can apply to China Everbright Bank for lower first-home loan interest rates. After adjustment, the interest rate type remains fixed interest rate.

2. Two adjustment methods

According to the requirements of the Central Bank and the State Financial Supervision Administration, there are two ways to adjust the interest rates of existing mortgage loans. One is through replacement of new loans, and the other is through negotiated changes. Contract interest rate.

Relevant policies for adjusting existing mortgage interest rates

On August 31, 2023, the People’s Bank of China and the State Administration of Financial Supervision issued the "Regulations on Relevant Matters Reducing the Interest Rates of Existing First Home Loans" notify". Starting from September 25, borrowers with existing commercial personal housing loans for their first homes can apply to the lending financial institution to adjust the interest rate. There are two ways to lower the existing first-home loan interest rates. One is to replace the loan with a new one, and the other is to negotiate a change in the contract interest rate.

Relevant persons in charge of the People's Bank of China and the State Administration of Financial Supervision stated that the specific interest rate adjustment range is determined by negotiation between the borrower and the borrower, but the adjusted interest rate cannot be lower than the first home in the city where the original loan was issued. Loan interest rate policy lower limit. The policy only applies to existing commercial personal housing loans. Provident fund loans and provident fund loan portions of portfolio loans are not within the scope of adjustment. Commercial personal housing loans in provident fund portfolio loans can apply separately for interest rate adjustment if conditions are met.

Reference for the above content: Baidu Encyclopedia-Existing Mortgage Interest Rate