Original title: The first home loan interest rate fell to 4.4% at the lowest level, but there were no calls for a reduction in the stock mortgage
“Do the people who buy a house first deserve it? I really hope that the relevant departments can also consider it for us and introduce a policy of reducing the interest rate of stock mortgages as soon as possible. While destocking, can people who have bought houses before also be covered? Relieve our life pressure, after all, we have also contributed to the development of the city.” A Luoyang home buyer said sadly.
The reporter called Bank of China Luoyang branch today, and the credit manager responded that the city has issued a unified document, and the first home loan interest rate has dropped to 4.4%. So far, Luoyang has become another city that responds to the lower limit of the minimum mortgage interest rate after Zhengzhou, Tianjin, Jinan and Suzhou.
Three days ago, the central bank and the China Banking and Insurance Regulatory Commission jointly issued a document to lower the lower limit of the first-home loan interest rate to a minimum of 4.4%. On May 17, some banks in Zhengzhou, Tianjin, Jinan, Suzhou and other places lowered their first mortgage interest rates to 4.4%.
In fact, the mortgage interest rate in Luoyang was lowered once a month ago. On April 12, in terms of new houses, the loan interest rate of many banks in Luoyang was lowered to 5.1% for the first home and 5.2% for the second home; for second-hand houses, the interest rate of some banks in Luoyang was 4.9% for the first home and 5.1% for the second home. Just half a year ago, the first home loan interest rate in Luoyang was as high as 6.37%, nearly 1 percentage point higher than that of Zhengzhou, the capital of Henan Province in the same period.
According to the documents of the central bank and the China Banking and Insurance Regulatory Commission, stock mortgages and second homes are not affected by the policy of lowering the lower limit of mortgage interest rates. That is to say, Luoyang home buyers who signed a loan contract with a mortgage interest rate of 6.37% last year “stands at a high position”.
Buying a house in the early half of the year actually increased the monthly payment by 1,200 yuan
Taking a loan of 1 million yuan and repaying it with equal principal and interest in 30 years as an example, the monthly payment is 6,235.43 yuan under the mortgage interest rate of 6.37%, and the monthly payment is 5,007.61 yuan under the 4.4% mortgage interest rate, a difference of more than 1,200 yuan. . According to the information released by the Luoyang Municipal Bureau of Statistics, the average annual salary of employees in urban non-private units in Luoyang City in 2020 is 75,588 yuan, of which the average annual salary of on-the-job employees (including labor dispatch) is 77,000 yuan, which is converted into an average monthly salary of about 6,300 yuan. In addition, according to the data of Shell Search, the current average price of second-hand houses in Luoyang is 8,977 yuan/square meter.
The reporter found under the People’s Voice column of Luoyang.com that dozens of citizens left messages suggesting lower loan interest rates for existing mortgages. A citizen said that in just a few months, the mortgage interest rate dropped directly from 6.37% to 4.4%, making it unacceptable for ordinary people who have already applied for loans and are repaying them. A number of citizens commented, saying that the pressure was too great under the epidemic.
It is understood that before dropping to 4.4%, the lowest mortgage interest rate for first home buyers in Zhengzhou was 4.9%, Tianjin 4.9%, Jinan 4.6%, and Suzhou 4.6%. Taking the loan of 1 million yuan and repaying it with equal principal and interest in 30 years as an example, under the new policy, home buyers in Zhengzhou and Tianjin can save 300 yuan in monthly payment, and buyers in Jinan and Suzhou can save 120 yuan in monthly payment. If you go back to last year, the first home loan interest rates in these four cities have all stood above 5%, which also means that more home buyers and Luoyang home buyers have similar experiences, but to different degrees.
Why is the mortgage interest rate in Luoyang so high before? Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said that the mortgage interest rate in a region is related to the loan amount of local banks and the number of bank branches. If the bank’s loan quota is small, the local interest rate may be high; if the local bank has a large number of branches and competition is fierce, the loan interest rate will be lowered.
Top-level design is needed to reduce the interest rate of existing mortgages
Zhang Dawei, chief analyst of Centaline Real Estate, said that since the beginning of this year, nearly 130 cities across the country have introduced real estate policies, and the blowout from April to May has set a new record, mainly involving adjustment of purchase restriction policies, reduction of down payment ratio, payment of housing subsidies, revision of sales restriction policies, and encouragement of multiple births. Household purchases, financial support for housing companies, etc.
He believes that the problems facing the current property market are not just real estate issues, but more about economic expectations. Due to the epidemic factor, it will take time for the (real estate) market to stabilize. The government should introduce more and more active policies to stabilize the property market, especially to lower the mortgage interest rates offered by banks to home buyers. Not only the new loan interest rate should be lowered, but the stock loan interest rate should also have a certain discount.
It is understood that lowering the 5-year LPR is one of the ways to narrow the monthly payment gap between home buyers before and after the New Deal, because changes in the 5-year LPR benchmark interest rate will affect both those who have purchased a house and those who have not purchased a house. However, even if the 5-year LPR interest rate announced the day after tomorrow is lowered, it does not mean that all users can immediately enjoy the preferential mortgage interest rate. According to the existing rules, the mortgage interest rate is usually adjusted once a year, and the re-pricing cycle actually agreed in the mortgage contract shall prevail.
Cui Guangcan, director and professor of the Real Estate and Urban Development Research Center of Shanghai Normal University, said that the interest rate of existing housing loans will be adjusted according to the market interest rate (the loan market quotation rate LPR) at the beginning of each year, but the specific floating point on the basis of LPR is determined by the contract when applying for a loan. According to the agreement, in theory, if there is a discount, it is necessary to re-sign the contract, and commercial banks do not have procedures for doing so. It is suggested that the central bank should issue a requirement that the mortgage interest rate can be discounted in stages. For example, it is more feasible to reduce or exempt interest for three months or half a year in areas affected by the epidemic. Or for families whose income is affected, a certificate issued by the unit or street can apply for interest reduction or exemption, but this also requires the central bank to issue a policy caliber to be operational.