In order to firmly implement the orientation of "housing is for living, not for speculation" and the long-term management mechanism of the real estate market, in the process of reforming and perfecting the formation mechanism of the loan market quotation rate (LPR), we should ensure the effective implementation of the regional differential housing credit policy, maintain the basic stability of the interest rate of individual housing loans, and maintain it. The People's Bank of China (PBC) issued an announcement on the issue of new interest rates on commercial personal housing loans on the 25th of this year on the legitimate rights and interests of both borrowers and lenders. According to the announcement, since Oct. 8, 2019, the interest rate of newly issued commercial personal housing loans has been formed with the quotation rate of the loan market for the corresponding period of the latest month as the pricing benchmark plus point. The added value should meet the national and local housing credit policy requirements, reflect the loan risk situation, and the contract period should be fixed and unchanged.
When a borrower applies for a commercial personal housing loan, he may negotiate with a banking financial institution to agree on a period of interest rate revaluation. The minimum period of revaluation is one year. The interest rate rebalancing date and the pricing benchmark are adjusted to the loan market quotation rate for the corresponding period of the latest month. The period of interest rate revaluation and the way of adjustment should be specified in the loan contract.
The interest rate of the first commercial individual housing loan shall not be lower than the quoted rate of the corresponding term loan market, and the interest rate of the second commercial individual housing loan shall not be lower than the quoted rate of the corresponding term loan market plus 60 basis points.
The provincial branches of the People's Bank of China should guide the self-regulation mechanism of interest rate pricing in the provincial markets in accordance with the principle of "implementing policy according to the city". On the basis of the unified national credit policy and according to the changes of the local real estate market situation, the lower limit of the first and two sets of commercial personal housing loan interest rates in their jurisdiction should be determined.
Banking financial institutions should clarify the pricing rules of commercial individual housing loan interest rate according to the lower limit of the added point determined by the self-regulation mechanism of interest rate pricing in each provincial market, combined with the operation situation of the institution, customer risk situation and credit conditions, and reasonably determine the specific added point value of each loan.
Banking financial institutions should do a good job in policy publicity, interpretation and advisory services, guarantee the contractual rights of borrowers and consumers'rights and interests according to law and regulations, strictly prohibit the provision of "refinancing" and "adding mortgage" services for personal housing loans, and ensure the smooth and orderly progress of relevant work.
Before October 8, 2019, commercial personal housing loans issued and commercial personal housing loans that have signed contracts but have not been granted are still implemented as stipulated in the original contract.
Commercial housing purchase loan interest rate shall not be lower than the corresponding term loan market quotation rate plus 60 basis points. The interest rate policy of individual housing loan of provident fund will not be adjusted for the time being.