pang ming: adjusting the interest rates of existing mortgage loans to better support the stable and healthy development of the real estate market
2024-09-24
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
china news service, beijing, september 24 (reporter xia bin) the chinese government announced on the 24th that it will guide commercial banks to reduce the interest rates of existing mortgage loans to near the interest rates of new loans, with an average reduction of about 0.5 percentage points. pang ming, chief economist of jones lang lasalle greater china, told china news service that adjusting the interest rates of individual existing mortgage loans in accordance with the law, steadily and orderly can better help the real estate market develop steadily and healthily.
pang ming pointed out that since the people's bank of china announced the cancellation of the national floor interest rate for personal housing loans and other real estate financial optimization policies in may this year, the vast majority of cities have successively significantly lowered or even cancelled the local floor interest rates for first and second home loans, and financial institutions can independently determine the interest rates for personal housing loans for customers.
"as the interest rate spread between new and old mortgages widens, there is room for lowering the interest rates on existing mortgages." pang ming said that adjusting the interest rates on existing personal mortgages can better reduce residents' behavior of prepaying loans and ensure bank operations and stability, avoid risks such as interest rates, credit, and violations of laws and regulations, better help the resident sector reduce loan repayment pressure and loan costs, better repair residents' balance sheets and enhance their consumption capacity and willingness, and better realize the policy demand of "expanding domestic demand with a focus on boosting consumption."
pang ming believes that commercial banks should actively respond to changes in the operating environment, optimize their business structure, strive to control the impact of lowering existing mortgage rates on interest rate spreads to a neutral level, achieve stabilization of net interest margins, and strengthen balance sheet management in accordance with the principles of foresight, efficiency, initiative and prudence to ensure normalized profit growth and sustainable development of banks, and promote a stable non-performing loan ratio.
he particularly mentioned that in the process of promoting a steady and orderly reduction in the interest rates of existing mortgage loans, it is necessary to carefully and meticulously compare and choose policies between repricing of the original bank and switching to mortgage.
pang ming believes that under the premise of marketization and legalization, it would be more prudent and easier to operate to promote the downward trend of existing mortgage interest rates through equal consultation and autonomous negotiation between the borrower and the original lending bank, by changing the contract agreement to adjust the markup or issuing loans with lower mortgage interest rates to replace the original existing loans.
he pointed out that commercial banks should accurately assess the borrower's existing mortgage interest rate, mortgage principal size, asset quality, credit record, risk level, repayment ability, whether the house is first-time home purchase, self-occupied, unit size, and other different situations, so as to clarify the standards, conditions and scope of interest rate adjustment, implement differentiated pricing, differentiated mortgage strategies, dynamically adjust risk control, and do a good job in related supporting work in the pre-loan investigation and post-loan tracking stages. (end)
