If you're going to apply for a loan, then you're probably going to want to know the interest rate of the bank you chose for a decision. So let us go into more detail about the mortgage interest rate and how it is calculated。

What's the interest rate on a Chinese bank mortgage

YOU MIGHT BE CONCERNED ABOUT THE MORTGAGE RATE OF THE CENTRAL BANK. FOR SHORT-TERM BORROWING, THE INTEREST RATE FOR LOANS UP TO AND INCLUDING ONE YEAR IS 4.35%. IF YOU NEED A MEDIUM- TO LONG-TERM LOAN, SUCH AS A LOAN FOR ONE TO FIVE YEARS (INCLUDING FIVE YEARS), THE INTEREST RATE IS 4.75%, WHILE THE INTEREST RATE FOR A LOAN FOR MORE THAN FIVE YEARS IS 4.9%。

THE INTEREST RATE OF THE SINO-TINO BANK'S PROVIDENT FUND LOAN ALSO DESERVES YOUR ATTENTION. THE INTEREST RATE FOR PROVIDENT FUND LOANS UNDER FIVE YEARS (INCLUDING FIVE YEARS) IS 2.61 TP3T, WHILE THE INTEREST RATE FOR PROVIDENT FUND LOANS OVER FIVE YEARS IS 3.11 TP3T。

SO HOW DO WE CALCULATE THE INTEREST ON THE LOAN FROM THE BANK? THE GOOD NEWS IS THAT THERE IS NO INTEREST OR EVEN MANAGEMENT FEE ON CREDIT CARD LOANS. BUT THIS DOES NOT MEAN THAT THE SERVICE IS COMPLETELY FREE, BECAUSE YOU WILL HAVE TO PAY THE FEES. FORTUNATELY, THE RATE IS QUITE LOW, AT 0.851 TP3T PER MONTH。

HERE IS A FORMULA TO HELP YOU UNDERSTAND: MONTHLY FEES = TOTAL LOAN AMOUNT X 0.851 TP3T, WHILE THE TOTAL AMOUNT YOU NEED TO REPAY PER MONTH = PRINCIPAL (TOTAL LOAN AMOUNT)/ TERM + MONTHLY FEES. THUS, THE TOTAL FEES = TOTAL LOAN AMOUNT X INSTALMENTS X 0.851 TP3T. IN THE CASE OF $10,000, IF YOU CHOOSE TO PAY IN 12 INSTALMENTS, YOU WILL HAVE TO PAY $918.33 PER MONTH, OF WHICH $85 IS FOR HANDLING, AND AFTER A YEAR YOU WILL HAVE TO PAY A TOTAL OF $1,020. SO IF YOU BORROW $10,000, THE EXPECTED ANNUALIZED INTEREST RATE IS ABOUT 10.21 TP3T, WHICH IS LOWER THAN THE CREDIT CARD'S EXPECTED ANNUALIZED RATE OF 181 TP3T。