Central Bank: Adjust interest rates for new commercial personal housing loans from October 8 | permainan kartu joker, quickspin slot
(Original title: People's Bank of China Announcement [2019] No. 16)
In order to resolutely implement the positioning of "houses are for living in, not for speculation" and the long-term management mechanism of the real estate market, in the process of reforming and improving the formation mechanism of the loan market quoted interest rate (LPR), ensure the effective implementation of regional differentiated housing credit policies and ensure With the interest rate level of personal housing loans being basically stable and the legitimate rights and interests of both borrowers and lenders being protected, the relevant matters regarding the interest rates of newly issued commercial personal housing loans are hereby announced as follows:
1. Starting from October 8, 2019, the interest rates of newly issued commercial personal housing loans will be based on the loan market quotation rate of the corresponding period in the last month as the pricing benchmark plus points. The value of points added should comply with national and local housing credit policy requirements, reflect the loan risk profile, and be fixed during the contract period.
2. When borrowers apply for commercial personal housing loans, they can negotiate with banking financial institutions to agree on an interest rate repricing cycle. The minimum repricing cycle is 1 year. On the interest rate repricing date, the pricing basis is adjusted to the loan market quote interest rate of the corresponding period in the last month. The interest rate repricing cycle and adjustment methods should be specified in the loan contract.
3. The interest rate of the first commercial personal housing loan shall not be lower than the market quoted interest rate of the loan of the corresponding period, and the interest rate of the second commercial personal housing loan shall not be lower than the market quoted interest rate of the loan of the corresponding period plus 60 basis points.
4. The provincial branches of the People's Bank of China should follow the principle of "policing according to the city" and guide the self-regulatory mechanism of market interest rate pricing in each province. Based on the unified national credit policy and the changes in the local real estate market situation, the lower limit of the interest rate increase for the first and second commercial personal housing loans in the jurisdiction shall be determined.
5. Banking financial institutions should clarify the interest rate pricing rules for commercial personal housing loans based on the lower limit of points added by each provincial market interest rate pricing self-regulatory mechanism, combined with factors such as the institution's operating conditions, customer risk status and credit conditions, and reasonably determine the specific point value for each loan.
6. Banking financial institutions should effectively carry out policy publicity, interpretation and consulting services, protect borrowers' contractual rights and consumer rights in accordance with laws and regulations, and strictly prohibit the provision of "re-mortgage" and "additional mortgage" services for personal housing loans to ensure that relevant work is carried out smoothly and orderly.
7. Before October 8, 2019, commercial personal housing loans that have been issued and commercial personal housing loans that have been signed but not issued will still be implemented in accordance with the original contract.
8. The interest rate for commercial housing purchase loans shall not be lower than the market quoted interest rate for loans of the corresponding period plus 60 basis points. The provident fund personal housing loan interest rate policy will not be adjusted for the time being.
1. What is the background of the announcement?
Personal housing loan interest rates are an integral part of the loan interest rate system. In the process of reforming and improving the loan market quoted rate (LPR) formation mechanism, the personal housing loan pricing benchmark also needs to be converted from the loan benchmark interest rate to LPR to better play the role of the market. At the same time, personal housing loan interest rates are also an important part of the long-term management mechanism of the real estate market and regional differentiated housing credit policies. In order to implement the positioning of "houses are for living in, not for speculation" and the long-term management mechanism of the real estate market, ensure the smooth and orderly transformation of pricing benchmarks, maintain the basic stability of personal housing loan interest rates, and protect the legitimate rights and interests of both borrowers and lenders, the People's Bank of China issued an announcement to clarify matters related to the adjustment of personal housing loan interest rates.
2. How will personal housing loan interest rates be priced after the reform?
After the reform, newly issued commercialThe personal housing loan interest rate is formed based on the LPR of the corresponding period in the last month as the pricing basis plus points. Among them, LPR is calculated from the loan market quoted interest rate quotes. The specific point value for each loan is determined by the lending bank in accordance with national and local housing credit policy requirements, comprehensive loan risk status, and negotiated with the borrower when issuing the loan. Once the bonus point value is determined, it remains fixed throughout the contract period.
3. When determining the pricing benchmark, how to understand the corresponding period?
Currently, LPR has two maturity varieties: 1-year term and more than 5-year term. There are directly corresponding benchmarks for the interest rates of personal housing loans with a term of one year and more than five years. The interest rate benchmarks for personal housing loans with a term of less than one year and between one and five years can be chosen by the lending bank independently between the two types of terms. After the reference benchmark is determined, the point value can be adjusted to reflect the term interest rate factor.
4. What is interest rate repricing?
Interest rate repricing means that the lending bank determines a new loan interest rate based on changes in the pricing basis according to the calculation method agreed in the contract. The announcement clarified that the personal housing loan interest rate repricing cycle can be negotiated and agreed upon by both parties, with the minimum being one year and the maximum being the contract period. Borrowers and lending banks can choose based on their own interest rate risk bearing and management capabilities. Each time the interest rate is repriced, the pricing basis is adjusted to the LPR of the corresponding period in the latest month.
5. What impact will it have on residents’ families?
The announcement mainly focuses on the interest rates of newly issued personal housing loans. The interest rates of existing personal housing loans will still be based on the original contract. After the pricing benchmark is converted, the interest rate of newly issued personal housing loans nationwide shall not be lower than the LPR of the corresponding period (based on the LPR of more than 5 years on August 20, which is 4.85%); the interest rate of the second personal housing loan shall not be lower than the LPR of the corresponding period plus 60 basis points (based on the LPR of more than 5 years on August 20, which is 5.45%), which is basically equivalent to the current actual lowest interest rate level of personal housing loans in my country. At the same time, branches of the People's Bank of China will guide the self-regulatory mechanisms for market interest rate pricing at the provincial level to promptly determine the lower limit of the local LPR increase point. Compared with before the reform, when households apply for personal housing loans, their interest payments are basically unaffected.
6. When will it be implemented?
October 8, 2019 is the pricing benchmark conversion date. Prior to this, the lending bank needs to modify the loan contract, transform and upgrade the system, organize employee training, and at the same time, adopt various methods to promote and explain to customers to ensure a smooth and orderly conversion process. Before October 8, 2019, loans that have been disbursed and contracts signed but not disbursed will still be subject to the original contract.
Author: Editor
