政府新闻
LPR下调后，上海贷款机构降低抵押贷款利率 2024-02-21
Lenders in Shanghai lower mortgage rates after central bank cuts long-term LPR
The Shanghai branches of several commercial banks lowered their mortgage rates on the same day China’s central bank cut its long-term loan prime rate, the benchmark to which mortgages, corporate loans, and fixed asset investments are anchored.
The mortgage rate for first-time home buyers was reduced to 3.85 percent yesterday, while the rate for second-time home buyers was lowered to 4.15 percent for suburban areas and 4.25 percent for urban areas, Yicai learned from several lenders in Shanghai, including the local branches of Bank of Communication, Bank of China, Shengjing Bank, Huaxia Bank, and Bank of Ningbo.
The People’s Bank of China yesterday cut the over five-year LPR by 25 basis points to 3.95 percent, down 35 bps from January last year. The one-year LPR remained unchanged at 3.45 percent. Both rates are at record lows.
The mortgage rate cut will directly lower people’s cost of buying apartments, enhance the payment ability of buyers, and stimulate the apartment-purchasing needs in the short term, Cui Guangcan, director of the property and urban development research center of Shanghai Normal University, told Yicai.
Sixty percent of the apartments for sale and sold in Shanghai are in the suburbs, Cui noted, adding that the mortgage rate cut was more prominent for buyers in suburban areas, so they will likely boost related apartment-buying needs.
The mortgage rate cut, coupled with a series of industrial policies introduced before the Chinese New Year holiday, may lead to an increase in the local real estate transaction volume, thus helping improve market expectations, he said. Cui also noted that the fluctuations in Shanghai’s property market are expected to be smaller this year.
China implemented the LPR scheme in August 2019. The PBOC releases LPR every month based on commercial banks’ updated market quotations from the National Interbank Funding Center around the 20 of each month.
Source: Yicai Global
