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China will link the personal mortgage loan rate to a new lending rate reference, starting fr
om Oct 8, to make it more flexible and market-driven, the central bank said in a statement on Sunday.ldsports,ldsportsapp419论坛
For purchasing the first house, individual borrowers of new mortgage loan will pay an intere
ldsports,ldsportsapp419论坛品茶微信st rate of no less than 4.85 percent – it is the five-year loan prime rate, or LPR, th
e new reference of bank lending reported by the People’s Bank of China, the central bank, on Aug 20.
Buyers of second house should pay an interest rate that is 0.6 percldsports,ldsportsapp419论坛
entage point above the LPR, which will be 5.45 percent, said the statement.
The existing mortgage loans, with the contracts signed earlier than Oct 8, will keep the old interest rates unchanged, it added.
ldsports,ldsportsapp419论坛品茶微信”That is almost at the same level of the current lowest person
al mortgage loan rate,” a spokesman with the PBOC said. “Compare with the si
tuation before the reform, the interest expense will be basically unchanged for borrowers.”ldsports,ldsportsapp419论坛
Liu Guoqiang, a vice-governor of the PBOC, said at a press
ldsports,ldsportsapp419论坛品茶微信conference last week that even under the new interest ra
te scheme, the rate for mortgage loans will not be lower, as the government will not ease the
real estate control policy nor “use real estate as a tool to stimulate short-term economic growth”.ldsports,ldsportsapp419论坛
The new method to set mortgage loan rate is part of the market-driven reform of the cou
ntry’s overall interest rate system, which made a remarkable progress on Auldsports,ldsportsapp419论坛品茶微信
g 17. It decided to use the LPR, the price of loans banks offer to their best clients, as a new
reference for bank loans, instead of the existing one-year benchmark lending rate.