After some banks in Taian, Linyi and Yantai in Shandong province cut their mortgage interest rates in March, recently, banking institutions in Rizhao, Liaocheng, Weifang, Jining, Weihai and Dezhou in Shandong Province generally cut their individual housing loan interest rates by 20 BP to 45 BP.
Sun, manager of the personal loan department of a business outlet in Industrial And Commercial Bank Of China Limited(601398) Rizhao, China, said: “recently, the interest rate of personal housing loans has decreased a lot compared with the previous period. The interest rate of the first house has decreased from 5.3% in February to 5.1% now, and the interest rate of non first house loans has decreased to 5.2%. At present, ICBC outlets in the city have handled business according to this interest rate. Our bank has sufficient housing loan quota. As long as the procedures are complete, we can lend on the same day.”
According to the relevant person in charge of Liaocheng branch of Agricultural Bank of China, “our bank has made policy adjustments in keeping with market changes. At present, the pricing policy of housing loan interest rate is in the state of downward adjustment. At present, the annual interest rate of the first house can be implemented at a minimum of 5%, and the annual interest rate of the second house can be implemented at a minimum of 5.2%, an average decrease of 20 BP compared with the end of 2021.” Relevant staff of Weifang bank also said, “personal housing loans are the high-quality assets of banks. Many banks have strengthened the marketing of personal housing loans by reducing the mortgage interest rate. The minimum interest rate of first house loans in many banks has been reduced to about 5%, and that of second house loans has been reduced to 5.2%. Consumers’ enthusiasm for house purchase is picking up.”
Some banks in Jining cut the most this time. In the early stage, the average interest rate of the first house loan of Jining banking institutions was about 5.4%, and the average interest rate of the second house loan was about 5.6%. After this reduction, the average interest rate of the first house loan is expected to be about 5%, and the interest rate of the second house loan is reduced to about 5.2%, down 40 BP and 45 BP respectively This will help to release the demand for rigid housing and promote the stable development of the real estate market.
Many banking institutions in Weihai and Dezhou reflect that the current policy lower limit of individual housing loan interest rate is that the loan for the first house shall not be lower than LPR and the loan for the second house shall not be lower than LPR + 60BP. The reduction of housing loan interest rate by commercial banks meets this requirement. Commercial banks can make independent adjustments according to the changes of local housing loan supply and demand and their own capital status. At present, the bank’s housing loan quota is relatively sufficient, the lending speed is improved, and there is no queuing lending phenomenon. In the next step, while providing efficient and high-quality services for customers, we will continue to dynamically adjust the individual housing loan interest rate according to market changes within the policy framework.
