New personal mortg乐动体育,乐动体育登录419论坛 to be based on LPR

China will link the personal mortgage loan rate to a new lending rate reference, starting fr

om Oct 8, to make it more flexible and market-driven, the central bank said in a statement on Sunday.乐动体育,乐动体育登录419论坛

For purchasing the first house, individual borrowers of new mortgage loan will pay an intere

乐动体育,乐动体育登录419论坛品茶微信st rate of no less than 4.85 percent – it is the five-year loan prime rate, or LPR, th

e new reference of bank lending reported by the People’s Bank of China, the central bank, on Aug 20.

Buyers of second house should pay an interest rate that is 0.6 perc乐动体育,乐动体育登录419论坛

entage point above the LPR, which will be 5.45 percent, said the statement.

The existing mortgage loans, with the contracts signed earlier than Oct 8, will keep the old interest rates unchanged, it added.

乐动体育,乐动体育登录419论坛品茶微信”That is almost at the same level of the current lowest person

al mortgage loan rate,” a spokesman with the PBOC said. “Compare with the si

tuation before the reform, the interest expense will be basically unchanged for borrowers.”乐动体育,乐动体育登录419论坛

Liu Guoqiang, a vice-governor of the PBOC, said at a press

乐动体育,乐动体育登录419论坛品茶微信conference last week that even under the new interest ra

te scheme, the rate for mortgage loans will not be lower, as the government will not ease the

real estate control policy nor “use real estate as a tool to stimulate short-term economic growth”.乐动体育,乐动体育登录419论坛

The new method to set mortgage loan rate is part of the market-driven reform of the cou

ntry’s overall interest rate system, which made a remarkable progress on Au乐动体育,乐动体育登录419论坛品茶微信

g 17. It decided to use the LPR, the price of loans banks offer to their best clients, as a new

reference for bank loans, instead of the existing one-year benchmark lending rate.

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