The LPR(Loan Prime Rate),which is published monthly,determines the basic interest rate of personal mortgages,which directly affects interest payments.The reporter learned on January 24 that the January LPR released by the National Interbank Funding Center authorized by the People's Bank of China showed that the 1-year LPR was cut by 10 bps to 3.7%,following a 5 bps cut in December last year,and the 5-year LPR was trimmed 5 bps to 4.60%from the previous month,the first reduction since April 2020.

On January 24,the reporter consulted with several banks in Shenyang and learned that after the adjustment of the 5-year LPR,citizens who have newly applied for housing mortgage will enjoy the new interest rate.The existing mortgage holders,that is,the mortgage holders who are repaying the mortgage,are required to pay the mortgage according to the conditions stipulated in the contract:if the contract stipulates a fixed interest rate,it will not be adjusted;if the contract stipulates a floating interest rate,it will be adjusted accordingly.

It is reported that most of the existing mortgage holders in Shenyang agreed to pay a floating rate mortgage as specified in the contract,and the interest rate will be adjusted once a year.After this LPR adjustment,the mortgage will be paid at the new interest rate from January 1 next year.

So,how much interest expenses can mortgage holders save after this 5-year LPR reduction by 5 bps?Relevant monitoring data shows that in December 2021,the average first house loan rate in Shenyang is 5.35%and the second house loan rate is 5.6%.This is equivalent to adding 70 percentage points and 95 percentage points to the current LPR(4.65%),respectively.After this adjustment,the city's average first house loan rate is 5.3%,and the second house loan rate is 5.55%.Taking CNY 1 million,30-year loan as an example,the total interest of the first house loan will be saved by CNY 11,192.55,and that of the second house loan will be saved by CNY 11,336.19.

(Liu Yang)