On May 8, after the central bank officially announced “interest rate cuts” and lowered interest rates on provident fund loans, Beijing, Shenzhen and many other cities successively followed up on the new policy and announced that interest rates on personal housing provident fund loans would be reduced by 0.25 percentage points, and interest rates for the first home with a term of 5 years or more would drop to 2.6%. According to the industry, interest rates on provident fund loans have a certain “anchoring” effect on commercial loan interest rates. In the past, interest rate differences between provident fund loans and commercial loans continued to narrow, resulting in limited room for lowering commercial loan interest rates. The New Deal is expected to drive commercial loan interest rates to fall accordingly, and the reduction is expected to exceed that of LPR. Looking back at the high interest rates in recent years, how much has the current mortgage burden been “reduced” in the end? Take a house with a total price of 3 million as an example. If you calculate a 30% down payment, a 30-year commercial loan, and equal principal and interest, the interest rate on the first home commercial loan fell from a high of 5.74% in 2021 to 3.01%, which is equivalent to a halving of total interest and a reduction of nearly 30% in monthly payments.

On May 8, after the central bank officially announced “interest rate cuts” and lowered interest rates on provident fund loans, Beijing, Shenzhen and many other cities successively followed up on the new policy and announced that interest rates on personal housing provident fund loans would be reduced by 0.25 percentage points, and interest rates for the first home with a term of 5 years or more would drop to 2.6%. According to the industry, interest rates on provident fund loans have a certain “anchoring” effect on commercial loan interest rates. In the past, interest rate differences between provident fund loans and commercial loans continued to narrow, resulting in limited room for lowering commercial loan interest rates. The New Deal is expected to drive commercial loan interest rates to fall accordingly, and the reduction is expected to exceed that of LPR. Looking back at the high interest rates in recent years, how much has the current mortgage burden been “reduced” in the end? Take a house with a total price of 3 million as an example. If you calculate a 30% down payment, a 30-year commercial loan, and equal principal and interest, the interest rate on the first home commercial loan fell from a high of 5.74% in 2021 to 3.01%, which is equivalent to a halving of total interest and a reduction of nearly 30% in monthly payments.