On October 12, Caixin reported that this morning, Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank all issued announcements regarding the batch adjustment of existing individual housing loan interest rates.

Bank of China: Will centrally adjust the existing individual housing loan interest rates on October 25.

Industrial and Commercial Bank of China issued an announcement on the bulk adjustment of existing individual housing loan rates. The adjustment rules are as follows: In areas such as Beijing, Shanghai, and Shenzhen, the first home loan rates higher than LPR-30BP and all existing home loan rates higher than LPR-30BP in other areas will be uniformly adjusted to LPR-30BP. The second home loan rates in areas such as Beijing, Shanghai, and Shenzhen higher than the corresponding policy lower limit will be uniformly adjusted to the local corresponding policy lower limit. For fixed-rate and benchmark-rate mortgages, customers need to apply for conversion to floating rates first, converting to the latest one-month loan market quoted rate (LPR) in a markup form. If the rate level is higher than LPR-30BP after conversion, then adjust the markup amount to the above lower limit. After the rate conversion, it cannot be converted back to fixed-rate or benchmark rate pricing. Existing individual housing loans that meet the conditions will be centrally and collectively adjusted by the bank on October 25, 2024, and the adjusted contract loan interest rates will be implemented from the same day at the new rate level, with interest calculated at the original contract rate level before the adjustment.

Agricultural Bank of China: Will start batch adjustment of existing individual housing loan interest rates on October 25.

Agricultural Bank of China issued an announcement regarding the operation matters related to adjusting existing individual housing loan interest rates. The adjustment rules are as follows: In regions where the lower limit of the interest rate markup for new housing loans has been cancelled, for existing housing loans (including first-time, second-time, etc.) with markup range higher than -30 basis points on the Loan Prime Rate (LPR), the markup range will be adjusted to -30 basis points. For loans with markup range not exceeding -30 basis points based on the LPR, no adjustment will be made. In regions such as Beijing, Shanghai, and Shenzhen where there is a lower limit for the interest rate markup for new housing loans, for existing housing loans (including first-time, second-time, etc.) with markup range higher than -30 basis points on the LPR, the markup range will be adjusted to -30 basis points and not lower than the current lower limit for the markup on new housing loans in the respective cities. For loans with markup range not exceeding -30 basis points or not higher than the lower limit of the markup, no adjustment will be made. To facilitate customers, the bank will proactively carry out batch adjustments starting from October 25, 2024, for existing housing loans that meet the criteria of this interest rate adjustment policy, without the need for customer applications.

Bank of China: will batch adjust the interest rates of existing individual housing loans starting from October 25th.

Bank of China announced that starting from October 25th, it will batch adjust the interest rates of existing individual housing loans. If the city where the mortgage is located has no policy on adding points to new mortgage interest rates or the lower limit of the policy is not higher than -30BP, then for those whose LPR point addition exceeds -30BP, their LPR point addition will be adjusted to -30BP; for those whose LPR point addition is not higher than -30BP, there will be no adjustment. If the city where the mortgage is located has a policy on adding points to new mortgage interest rates and the lower limit of the policy is higher than -30BP, then for those whose LPR point addition exceeds the lower limit of the policy, their LPR point addition will be adjusted to the lower limit of the policy; for those whose LPR point addition is not higher than the lower limit of the policy, there will be no adjustment.

For floating rate loans with LPR pricing adjustment within the scope, customers do not need to apply. Bank of China will make centralized adjustments on October 25, 2024. The interest rate will be executed at the new level on the same day as the rate adjustment, and the interest before that will be calculated based on the original contract rate level.

China Construction Bank: will uniformly adjust the batch of existing housing loan interest rates on October 25th.

China Construction Bank issued the "Announcement on Operational Matters for Bulk Adjustment of Existing Mortgage Loan Rates in 2024". The announcement states that floating rate loans eligible for this bulk adjustment do not require borrowers to apply. The bank will carry out a unified bulk adjustment on October 25, 2024, fully meeting customers' convenience needs for interest rate adjustments.

1. Except for second and subsequent home loans in Beijing, Shanghai, and Shenzhen, for existing mortgage loans included in this bulk adjustment in other areas, as well as first home loans included in this bulk adjustment in Beijing, Shanghai, and Shenzhen, the uniform adjustment range of the rate on the basis of LPR is set at -30 basis points, with the new rate taking effect immediately.

2. For second and subsequent home loans in Beijing, Shanghai, and Shenzhen included in this bulk adjustment, the adjustment range of adding points to the rate based on LPR will be adjusted to the minimum limit of the respective second home loan rate points in the city. For specific lower limits, please refer to the customer Q&A on our bulk adjustment of existing mortgage rates, or consult the loan processing institutions. If the agreed rate based on LPR plus points is not higher than the minimum rate point of the respective second home loan rate in the city, no adjustment will be made.