Guangzhou’s new personal mortgage loan interest rate will be implemented on New Year’s Day

Guangzhou’s new personal mortgage loan interest rate will be implemented on New Year’s Day (Alberta Times special reporter in Guangzhou) Starting from January 1, 2012, some measures involving people’s livelihood in Guangzhou...

Guangzhou's new personal mortgage loan interest rates will be implemented on New Year's Day (Alberta Times special reporter in Guangzhou) From January 1, 2012, some laws and regulations related to people's livelihood in Guangzhou will be officially implemented, which will have a certain impact on citizens' lives, especially the adjustment of mortgage interest rates. In 2011, the central bank raised interest rates three times. Since most borrowers chose to raise interest rates the following year, this means that citizens will have to pay for three interest rate increases starting from New Year's Day. If they repay their loans at the new interest rate, monthly mortgage borrowers will bear a heavier interest burden. In 2011, the central bank raised interest rates three times on February 9, April 6 and July 7, which means that most borrowers will have to repay their loans at the new interest rate from January 1, 2012, and monthly mortgage repayers will have to bear a heavier interest burden. According to the new interest rate, how much more will monthly repayments be required? Calculated based on the base interest rate of 6.40% at the beginning of the year, for a loan of 1 million yuan with a term of 20 years and equal principal and interest repayment, the monthly supply and demand will be 7,397 yuan, and the total interest to be paid in 20 years will be 775,300 yuan; if calculated based on the new interest rate of 7.05%, the monthly supply and demand will be 7,783 yuan, and the total interest payment will be 867,900 yuan. That is to say, the monthly interest payment will be 386 yuan more, and a total of 92,700 yuan more interest will be paid. How can it be more cost-effective to get a bank loan next year? Industry insiders said it is still provident fund loans. The current provident fund loan interest rate is 4.9% and the commercial loan interest rate is 7.05%, a difference of 2.15 percentage points. At present, housing prices have dropped, which is a good opportunity for citizens with strong financial strength to buy a house in full. However, if you are planning to buy a house with a monthly loan, you must consider it carefully, because the current housing prices have indeed declined, but the down payment and interest rates have risen to historical peaks, and the cost of mortgages is already quite high. It still needs to be verified whether the declining housing prices can offset these increased costs.