Self-negotiation, dynamic adjustment! Several banks refine the detailed rules for the pricing mechanism of existing mortgage rates.

ICBC, ABC, BOC, CCB, Bank of Communications, Postal Savings Bank, and several other banks have released announcements stating that they will improve the pricing mechanism for existing personal housing loan interest rates starting from a specified date. Borrowers can negotiate with banks on their own and dynamically adjust the interest rates on existing mortgages, with the shortest re-pricing cycle being adjustable to 1 month.

According to announcements from multiple banks, this adjustment applies to commercial personal housing loans with floating interest rates, primarily optimizing and refining from two aspects: adjustment of the spread and adjustment of the repricing cycle. Currently, the vast majority of mortgage rates in China are formed by adding a spread to a benchmark rate.

In terms of the adjustment of the interest rate spread, several banks' announcements indicate that when the mortgage interest rate spread of a borrower deviates by more than a certain basis point compared to the latest national average spread of newly issued mortgage rates, the borrower can apply to the bank for an adjustment. The re-agreed spread shall not be lower than the latest national average spread of newly issued mortgage rates plus a certain basis point, and not lower than the current lower limit of the spread for newly issued mortgage rates in the borrower's city of residence (if applicable).

On that day, the People's Bank of China also released the average interest rate of newly issued mortgage loans in the third quarter nationwide, for reference by commercial banks and borrowers. Data shows that the weighted average interest rate for newly issued personal mortgage loans nationwide in the third quarter was %. Experts stated that by the end of the month, the加点幅度 for the vast majority of borrowers had been adjusted in bulk to a reduction of 个基点, and it is expected that the majority of borrowers will not need to adjust the 加点幅度 in the fourth quarter.

In terms of the repricing cycle adjustment, borrowers can apply for monthly, quarterly, or annual repricing, but most banks stipulate that customers can only apply for adjustment once during the entire term of the same loan. Several banks have also announced adjustment channels, and from the beginning of the month, floating-rate mortgage customers can submit adjustment applications through mobile banking or the loan servicing branch.

In addition, for individual housing loans with fixed interest rates or benchmark interest rate pricing, if an application is needed to change the pricing terms stipulated in the loan contract, it must first be converted into a floating interest rate loan based on the pricing benchmark.

To better leverage the role of market mechanisms and safeguard the legitimate rights and interests of both lenders and borrowers, the People's Bank of China issued a public announcement on a certain date, clarifying matters related to the improvement of the pricing mechanism for commercial individual housing loans. According to the announcement, when the deviation between existing mortgage rates and newly issued mortgage rates nationwide reaches a certain level, borrowers can negotiate with banks on a voluntary and dynamic basis to adjust existing mortgage rates and agree on the re-pricing cycle.