Revealed: Beijing’s first home purchase interest rate has dropped, saving 110,000 in 30 years!
A big thing happened in the Beijing property market recently, which made many first-time homebuyers and real estate investors excited: the interest rate for the first mortgage fell to 3.5%! Yes, you heard it right, this historically low interest rate means that for a 1 million yuan mortgage, you can save more than 110,000 yuan in interest over 30 years.
This is undoubtedly good news for those who are or are about to embark on the road of buying a house.
What are the details of this adjustment? In simple terms, according to the latest policy, the lower limit of the interest rate for commercial personal housing loans newly issued by commercial banks for the first home is adjusted to no less than the loan market benchmark rate (LPR) of the corresponding term minus 45 basis points, making the lower limit of the mortgage interest rate for more than 5 years reach 3.5%.
This is not just a simple numbers game.
Taking a loan of 1 million yuan as an example, assuming the original interest rate is 4.2%, the monthly payment is approximately 4,890 yuan. Under the new interest rate of 3.5%, the monthly payment is reduced to approximately 4,667 yuan, saving 223 yuan per month.
Cumulatively, you can save more than 70,000 yuan in interest expenses in 30 years.
Of course, such policy changes have far-reaching impacts on the market.
First, it significantly lowers the entry barrier for first-time homebuyers and increases purchasing power.
Secondly, for homeowners who already have mortgages, if their interest rates are higher than the current market level, they may consider refinancing to lower their monthly payments.
Finally, this measure is expected to boost the overall sentiment in the real estate market and promote an increase in transaction volumes.
It is worth noting that while low interest rates reduce repayment pressure, it may also cause some home buyers to over-borrow.
Therefore, while enjoying the benefits of low interest rates, homebuyers still need to carefully assess their financial situation to ensure that they do not get into trouble in the future due to excessive loans.
Beijing's reduction in the interest rate on first-home mortgages is a positive signal that not only brings benefits to home buyers, but may also have an important impact on future real estate market trends.
As a potential home buyer or real estate investor, understanding and making good use of this policy will undoubtedly add wisdom to your investment decision.
