[Industry News]: LPR has been significantly lowered, and many banks in Shanghai have adjusted their first home loan interest rates to 3.85%
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February 20, 2024, 1:37 PM
The latest loan market quoted interest rate (LPR) has been newly released, and the 5-year LPR has been lowered by 25 basis points to 3.95%. On the same day, many banks in the Shanghai area lowered mortgage interest rates based on LPR, adjusting the interest rate on the first home loan to 3.85%, and the interest rate on the second home loan to 4.25%. It is worth noting that the decline in LPR is not an immediate adjustment for existing mortgages. For banks, the re-pricing date of mortgage interest rates is January 1 of each year or the loan issuance date. Therefore, for existing mortgages, on the same day as the interest rate re-pricing date, the new interest rate will be calculated based on the latest LPR quotation rate plus the basis point agreed in the contract., implemented in the next cycle. (Cailian)