Many people have chosen to buy their dream homes through loans, so the interest rate has become a matter of considerable concern. If you're asking, what is the usual interest rate on mortgages, let's find out。

How much is the interest rate on a home purchase loan

WE FIRST LOOK AT INDIVIDUAL HOUSING FUND LOANS. THOSE DEALING WITH SUCH LOANS WILL FACE THE BENCHMARK INTEREST RATE FOR CENTRAL BANK LOANS. IN THIS SCHEDULE, PUBLISHED BY THE PEOPLE ' S BANK, THE ANNUAL INTEREST RATE FOR SPF LOANS OVER FIVE YEARS IS 3.251 TP3T, WHICH WOULD BE 1.1 TIMES THE BASE RATE IF YOU BUY A SECOND SET OF SPF LOANS。

LET'S LOOK AT THE INTEREST RATE FOR INDIVIDUAL COMMERCIAL HOUSING LOANS, WHICH IS FORMED BY THE LPR (MARKET OFFER RATE FOR LOANS) AND FLOATING POINTS FOR THE CORRESPONDING PERIOD. LPR CAN BE UNDERSTOOD AS 4.65% OVER A FIVE-YEAR PERIOD. AS FOR THE NUMBER OF FLOATING POINTS, THAT WOULD DEPEND ON WHERE YOU WERE AND WHICH BANK, WHICH MIGHT BE DIFFERENT。

AT THE SAME TIME, IT SHOULD BE RECALLED THAT THE PEOPLE ' S BANK HAS SPECIFIED THAT THE LPR FOR THE FIRST SET OF COMMERCIAL LOANS CANNOT BE LOWER THAN THE CORRESPONDING TERM, AND THAT THE LPR FOR THE SECOND SET OF COMMERCIAL LOANS IS A MINIMUM OF 60 BASIS POINTS FOR THE CORRESPONDING TERM, ONE OF WHICH IS EQUIVALENT TO 0.011 TP3T。

IN SOME AREAS, ADJUSTMENTS WOULD BE MADE ON THIS BASIS, SUCH AS BEIJING, WHICH SET A MINIMUM LPR PLUS 55 BASE POINTS FOR THE FIRST HOME, AND LPR PLUS 105 BASE POINTS FOR THE SECOND。

WE ALL KNOW THAT WHEN WE BUY A HOUSE, WE CAN CHOOSE A FIXED OR FLOATING INTEREST RATE. SIMPLY PUT, IF YOU CHOOSE A FIXED ONE, HOWEVER THE LPR CHANGES, YOU HAVE TO PAY BACK THE CONTRACT RATE EVERY YEAR; IF YOU CHOOSE TO FLOAT, THE LPR RATE IS ADJUSTED. IN 2021, FOR EXAMPLE, LPR HAD FALLEN BY 0.2%, AND IN 2021, THE INTEREST RATE ON MORTGAGES FOR THOSE WHO HAD CHOSEN TO FLOAT THE INTEREST RATE ON MORTGAGES HAD ALSO DECLINED。

This does not mean, however, that interest rates have fallen, that the monthly repayments of mortgages have decreased and that, in general, new loan rates will not begin until the beginning of the following year or the first month of the next loan year. At the same time, each bank sets an upward ratio of loans based on its own credit and local housing policy, which is not fixed. Thus, when the base rate is revised downwards, the monthly amount to be repaid will certainly decrease, but the extent and timing of the reduction will depend on the mortgage contract entered into。