Bank responds to rising mortgage rates in Guangzhou: actual interest rates remain unchanged

This weekend, news of "Guangzhou mortgage interest rates rising by 10 basis points" sparked heated discussions on social media, with many homebuyers worried that rising interest rates will increase their monthly payments. Journalists have confirmed from several commercial banks that the current first home mortgage interest rate in Guangzhou has been adjusted from the previous LPR-60 basis points to a unified LPR-50 basis points. It is widely expected in the market that the loan market quoted interest rate announced on May 20 may be lowered by 10 basis points. This means that the 5-year LPR may drop from the current 3.6% to 3.5%. Based on this calculation, the new mortgage interest rate would be 3.5% - 50 basis points = 3.0%, which is the same as the previous 3.6% - 60 basis points = 3%, so the actual effective interest rate will remain at 3%. Behind the changes in interest rates is the monetary policy trend of the central bank further increasing the intensity of counter-cyclical adjustments. "From the notifications currently received within the banks, it is a unified implementation of LPR-50bp," said a senior manager of a large commercial bank's personal loan department. "If the LPR is lowered by 10 basis points, the interest rates for new applicants will remain basically unchanged; for existing mortgage customers, if the basis points remain unchanged and the LPR is lowered, the actual interest rates will decrease accordingly." This means that existing mortgage customers will directly benefit from the LPR reduction, while new applicants will generally maintain the same interest rate level, with limited overall impact on the market, highlighting more of a "minor adjustment" in policy and stable transmission of market confidence.