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PBOC: Floating Rate Mortgage Borrowers Can Negotiate Repricing Cycle with Banks Starting Nov
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The People's Bank of China (PBOC) announced measures to improve the pricing mechanism for commercial personal housing loan interest rates. Borrowers applying for commercial personal housing loans can choose either a fixed rate or a floating rate as the pricing method. For contracts with a fixed rate, the interest rate remains unchanged throughout the contract period. For contracts with a floating rate, the interest rate is based on the latest one-month Loan Prime Rate (LPR) plus a margin that reflects factors including market supply and demand as well as borrower risk premium. The announcement also stated that starting from November, for contracts with a floating rate, commercial personal housing loan borrowers can negotiate with banking financial institutions to agree on a repricing cycle. On the interest rate repricing day, the pricing benchmark will be adjusted to the latest one-month LPR. AAStocks Financial News |
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