Original link: https://tumutanzi.com/archives/17107
A few days ago, September 25th, I paid special attention to this day. That day, I checked and found that my mortgage interest rate had really dropped, from the previous LPR + 83.5 basis points to the so-called “corresponding period LPR interest rate”, which is LPR + 0 basis points. Calculated in this way, even based on the current LPR of 4.3% (the latest five-year LPR is 4.2%), the monthly mortgage cost is reduced by a small 1,000 yuan.
At the beginning of the year, various “good” news for the real estate market continued, including lowering the interest rate of new mortgages, lowering the down payment ratio, and lowering agency fees. Everyone hoped that if the interest rates of existing mortgages were really reduced, it would be really good. But for banks, will they still spit out the fat they got? Those who bought a house before have already signed a loan contract with the bank. Even if the bank does not lower the interest rate of existing mortgage loans, there is nothing wrong with it. The spirit of the contract is needed by both parties.
Unexpectedly, more and more people are paying off their mortgages in advance, and even replacing high-interest mortgages with lower-interest operating loans. The banking industry should do a general ledger calculation. Instead of watching the existing mortgage loans with high interest rates shrink and shrink, they should take advantage of the trend and “give profits”, lower the interest rates of existing mortgage loans, and reduce the number of people who repay their loans early. In this way, overall It is said that banks can still maintain their profit scale, and can respond to national policies, releasing benefits and increasing the consumption power of existing housing slaves.
Overall, both banks and housing slaves benefited. A house slave like me saves a lot on the monthly mortgage without spending any effort.
In fact, China’s mortgage interest rates have always been relatively high compared to Europe. When I bought a house at a high price in 2018, the interest rate was about 5.6%. The mortgage interest rate for my classmates in Belgium during the same period was only about 2%, and you could also add a renovation loan – because the bank believed that the renovation would increase the value of the mortgaged property.
But I predict that China’s long-term interest rates will fall , and it will become easier for high-quality customers to borrow money . Therefore, when the mortgage interest rate in 2020 was free to choose between fixed interest rates and LPR floating interest rates, I chose the LPR floating interest rate without hesitation. Because I think that after China’s economic size increases, its future growth rate will not be as fast as before, which means that the overall profit margin of all walks of life will only decline.
“The Wealth of Nations” revealed that the upper limit of bank interest rates is the average social profit rate. Therefore, in the foreseeable future, the deposit and loan interest rates of China’s banking industry will only fall because the profit margins of all walks of life are declining. You can study the report of the 20th National Congress of the Communist Party of China. The five words “high-quality development” in the report also illustrate this point – if it is difficult to increase the speed, we have to improve the quality.
Correspondingly, the declining deposit and loan interest rates in recent years are in line with my prediction. I just didn’t expect that after I chose LPR to keep up with the falling interest rates, I would be able to passively enjoy the favorable policy of banks actively lowering existing mortgage interest rates this year. Although the starting point of this banking industry should be to put its own interests first, and not necessarily the housing slaves first, the existing housing slaves have indeed benefited, and everyone is happy with the win-win situation, not to mention that human nature is inherently selfish.
Today, when it is so difficult to make money, saving money is also profitable. How much has your housing loan dropped? Go check it out quickly.
This article is reproduced from: https://tumutanzi.com/archives/17107
This site is only for collection, and the copyright belongs to the original author.