A number of banks cut the mortgage interest rate by 2 million yuan, and the monthly housing supply for 30-year mortgages can be reduced by 250 yuan.

　　After the 1-year and 5-year LPR declines last month, the LPR remained unchanged in February, which was in line with market expectations. However, many banks in Guangzhou have lowered the mortgage loan interest rate. According to an all-media reporter survey of Guangzhou Daily, on February 21st, the interest rates of the first and second home loans of Workers, Peasants and Zhongjian in Guangzhou were all lowered by 20BP compared with those before the holiday, and many banks also indicated that they would follow suit. Not only that, at present, the amount of mortgage loans in Guangzhou is sufficient, and there is basically no need to wait in line.

　　Text/Table Guangzhou Daily All-Media Reporter Lin Xiaoli Wang Chuhan

　　On February 21st, ICBC, China Construction Bank, Agricultural Bank of China and Bank of China all said that from now on, the interest rate of their first home loan in Guangzhou will be lowered to LPR+80BP(5.4%), and the interest rate of their second home loan will be lowered to LPR+100BP(5.6%). The first two sets are 20BP lower than before the Spring Festival. Assuming a loan of 2 million yuan for a 30-year mortgage, if the mortgage is reduced by 20 BP, the buyer can pay less for the mortgage in 250 yuan every month, and the accumulated interest can be saved by about 90,000 yuan in 30 years.

　　The Postal Savings Bank said that since February 22, the bank began to implement the newly adjusted mortgage interest rate in Guangzhou. After adjustment, the first home loan interest rate LPR+80BP(5.4%) and the second home loan interest rate LPR+100BP5.6%(5.6%).

　　A number of joint-stock commercial banks have also lowered the mortgage interest rate one after another. Guangzhou Branch of Guangfa Bank has set the lowest enforceable interest rates for the first suite and the second suite as LPR+80BP and LPR+100BP, respectively, which is about 10BP lower than the previous executive interest rate pricing. Huaxia Bank Guangzhou Branch said that it began to cut 20BP； in early February; CITIC Bank Guangzhou Branch said that the pricing was lowered by 20BP following the adjustment of the four major banks. The reporter found that at present, the interest rates of the first and second home loans of HSBC in Guangzhou market are relatively low, which are 4.9%(LPR+30BP) and 5.4%(LPR+80BP).

　　There is no need to queue up to apply for a mortgage with sufficient quota.

　　Not only did the mortgage interest rate drop, but many banks said that the mortgage amount was loose and there was basically no queuing for lending. Guangzhou Agricultural Bank said that the current quota is relatively sufficient, and there is basically no queuing for lending. Guangzhou ICBC also said that the bank’s mortgage quota has been relaxed, and there is no backlog of businesses that meet the loan conditions at present. At the same time, the bank gives priority to supporting the needs of "just needed" and first-time home buyers. Huaxia Bank, Minsheng Bank and other joint-stock commercial banks Guangzhou Branch said that the current quota is sufficient, and loans can be made when the loan conditions are met. Minsheng Bank Guangzhou Branch said that the current lending time is generally 30 days. Guangzhou Branch of Guangfa Bank also said that the current mortgage loan amount of the branch is sufficient, and the loan can be arranged with complete billing information, and the average loan time is less than one month.

　　Demand decreases, banks cut prices and compete for customers.

　　The reporter noted that on the afternoon of February 21, the real estate development sector moved up, with Guangzhou real estate stock Zhujiang shares trading at a straight line.

　　Zheng Dayuan, a senior mortgage expert in Guangzhou, said that since November last year, the mortgage interest rate in Guangzhou has entered a downward channel. The mortgage interest rate that had been rising all the way before has been reversed, and the situation that a loan is hard to find has gradually eased. By this year, there is basically no backlog of mortgage applications from banks, and the speed of lending has obviously accelerated. "The downward adjustment of mortgage interest rate will promote the prosperity of the real estate industry and help the real estate industry develop in a more stable direction. It is expected that there will still be room for continued downside in mortgage loans in the future. " Zheng Dayuan believes.

　　A bank-related person told reporters that for banks, the current mortgage policy and quota have not changed, but the demand side. With the decrease in market turnover, the amount of bank mortgage loans has begun to become sufficient. In this context, banks also compete for customers by lowering mortgage interest rates.

　　A number of banks said that they would adhere to the positioning of "staying in houses without speculation" and give priority to supporting "just-needed" and first-time home buyers. The China People’s Bank recently issued the "Monetary Policy Implementation Report of China in the Fourth Quarter of 2021", saying that the next step will be to firmly adhere to the positioning that houses are used for living, not for speculation, not to use real estate as a short-term means to stimulate the economy, to stabilize land prices, house prices and expectations, to implement a prudent management system for real estate finance, to increase financial support for housing leasing, to safeguard the legitimate rights and interests of housing consumers, to better meet the reasonable housing needs of buyers, and to promote the healthy development and virtuous circle of the real estate market.

　　Central bank trend

　　In February, the LPR quotation remained unchanged, which was in line with market expectations.

　　In addition, it is worth paying attention to the February LPR quotation. On February 21st, the People’s Bank of China authorized the National Interbank Funding Center to announce that the quoted interest rate (LPR) of the loan market on February 21st, 2022 was 3.7% for one-year LPR and 4.6% for five-year LPR, both of which were the same as that in January. This is the same in February after the 1-year and 5-year LPR double drops last month, which is in line with market expectations.

　　Zhou Maohua, a macro researcher in the financial market department of China Everbright Bank, pointed out that the central bank continued to make MLF at parity this month, and the market had expected the LPR interest rate to remain stable this month. Mainly due to the continuous release of the effect of the central bank’s policy of lowering the RRR and cutting interest rates, the financial data showed strong performance in January, and the supply and demand of financing in the real economy were booming, indicating that finance continued to provide strong support for the recovery of the real economy, and the urgency of guiding the further decline of credit interest rates in the short term was not high.

　　According to the public information of the People’s Bank of China, on February 15th, the People’s Bank of China continued to operate the 300 billion yuan medium-term loan facility (MLF), and the interest rate of winning the bid remained unchanged. LPR, which remained unchanged for 19 consecutive months, was continuously lowered in December last year and January this year.