LPR has received wide attention from the market and has touched the hearts of countless mortgage users. The current round of LPR cuts for more than 5 years also means that a new round of mortgage interest rate adjustment will be ushered in. The largest LPR rate cut of more than 5 years in history, how much money can be saved for friends with mortgages? Let's do the math.
According to the balance of the mortgage of 1 million yuan, 30 years of equal principal and interest repayment method calculation, previously according to 42%, and the 5-year LPR was lowered to 395%, so calculated, the monthly payment of home buyers can be reduced by 145 yuan, and a total of 5 can be saved in 30 years20,000 yuan in interest expenses.
Taking Beijing as an example, according to the previous policy plan, starting from December 15, 2023, the lower limit of the interest rate policy for the first and second houses in the six districts of Beijing will be no less than the corresponding LPR plus 10 basis points, and not less than the corresponding LPR plus 60 basis points; The lower limit of the interest rate policy for the first and second houses in the six non-urban districts is not less than the corresponding term LPR and not less than the corresponding term LPR plus 55 basis points respectively. This also means that buyers will buy their first home in Beijing's sixth district after February 20, and the loan interest rate will be 395% + 10 basis points, i.e. 405%。This is also the lowest record for the first home loan interest rate in Beijing since the mortgage rate was anchored to the LPR, and it was 4 before this round of adjustment30%。Based on this calculation, under the same mortgage balance of 1 million yuan and 30-year equal principal and interest repayment, the monthly monthly payment amount of Beijing home buyers can be reduced by 14569 yuan, a total of up to 5 can be saved in 30 years240,000 yuan interest.
Monthly mortgage payments aren't going to drop right awayThere are two scenarios
The five-year LPR has dropped, is the effect immediate? Will my next month's payments drop immediately? to find out
Unlike corporate loans, personal housing loans have long tenures, and more than 99% of the current interest rates on personal housing loans are linked to the market** interest rate for loans with a term of more than 5 years. In the actual home loan, the repayment amount of the mortgage person who chooses the variable rate will be related to the change in the interest rate of the loan market. People who choose a fixed interest rate mortgage will not be affected by the decline in the interest rate of the loan market. However, the repayment amount of those who choose a variable rate mortgage is not immediately adjusted according to the latest loan market ** interest rate. Rather, it has to do with the repricing cycle that the buyer chooses when signing the contract with the bank.
At present, there are two main ways for banks to reprice the pricing cycle: the first is to reprice on January 1 of each year, and the second is to reprice 12 months after the expiration of the contract. Therefore, borrowers need to determine the time when they can enjoy the interest rate change according to their own contract and communicate with the bank.
Highlights:Consult with the bank to determine the time to enjoy the interest rate change
According to the rules mentioned in the video, you still have to consult the bank to see what you agreed with the bank. If the repricing date is January 1 of each year, then these users will only be able to adjust the interest rate according to the LPR in December 2024 in January 2025. If the repricing date is February 21, then this part of the users can immediately enjoy the interest rate reduction.
After the adjustment, the first home loan in Shanghai, Guangzhou and ShenzhenInterest rates are below 4%.
The LPR for more than 5 years was cut by 25 basis points, creating the largest reduction in history. Since the lower limit of the interest rate of the first housing commercial personal housing loan in most cities in the country is set at the LPR of the corresponding period or LPR minus 10 basis points, after the LPR of more than 5 years is reduced, the interest rate of the first home loan in the first-tier cities, Shanghai, Guangzhou and Shenzhen will be lower than 4%, and the lower limit of the national mortgage interest rate policy will also be adjusted to 3 with the LPR75%。
LPR with a maturity of more than 5 years has been significantly reducedWhat signal to release
LPR has received widespread attention, what is the impact on ordinary people and other financial markets? Let's listen to Xu Hongcai, deputy director of the Economic Policy Committee of the Chinese Society for Policy Sciences
Xu Hongcai, deputy director of the Economic Policy Committee of the Chinese Society for Policy Sciences: The benchmark interest rate for five-year loans fell by 25 basis points from 42% to 395 percent, which is a magnitude that has not been seen in the past five years. A strong policy signal is to reduce the long-term financing costs for households and businesses. Promote the revitalization of economic activities and consolidate the momentum of steady economic recovery.
This time, the five-year loan interest rate is actually to guide long-term investment and financing activities, especially residents' consumer loans and residents' housing mortgage consumer loans, which directly benefit from it. At the same time, short-term interest rates remain relatively unchanged, which is conducive to the relative stability of financial institutions' operating activities, as well as the stability of short-term capital flows and the relative stability of exchange rates.
There will be a gradual and slow recovery process of prices, so there is still room for RRR and interest rate cuts. In particular, the Federal Reserve may begin to cut interest rates around May this year, which will further open up the space for marginal easing policies of China's leading banks to cut reserve requirements and interest rates.
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