Bank of China sharply increases mortgage rates for other banks or follow up

According to the voice of China's "news" 8:02 reported that the Bank of China recently issued a new mortgage rules, announced the increase in mortgage rates, the previous mortgage interest rate concessions to the mortgage new deal on par. After the adjustment, the lending rate for the first suite of loans exceeding 5 years will rise to 5.049%, and the second to 6.534%, and the third to 7.128%.　　This means that customers who previously enjoyed a 70 percent per cent interest rate on BOC will raise interest rates when the contract expires. The central bank's boots have been slow to raise interest rates, and Bank of China has suddenly been "raising interest rates" on mortgage loans. Some insiders believe that the knife cut the depth of the wound, in the near future may be greatly unexpected. What will be the ripple effect after the 70 percent interest rate of the stock loan exits?　　Wired economic observer Ma Guangyuan. Moderator: Good morning, Mr. Ma. If the 20-year 1 million-yuan mortgage calculation, in the Chinese Bank of China after this round of extraordinary "interest rate", like the introduction of the three types of stock housing customers, their monthly supply will be increased by about 483 yuan, 1330 yuan, 1686 yuan.　　What do you think of this rate hike, is it big or small? Ma Guangyuan: According to normal calculation, we see that for two sets of mortgages, three sets of mortgages including the first set of mortgages, the overall rate hike is quite large. In particular, after 2008 mortgage concessions, including two sets, three sets, interest rates have enjoyed 70 percent discount, so for a set, from 70 percent to 85 percent relatively still can accept a little, but for two sets, three sets or even three sets of above, if previously enjoy 70 percent discount,　　Now it's 1.1 times times even 1.2 times times, and that's a lot of strength. So for two sets of more than three sets of this stock of housing, if true according to the agreement of the Bank, the implementation of the new interest rate policy, we have just calculated this value is in accordance with 100万来, if buy a big house, 2 million, more than 3 million, for the purchase of more than two housing buyers, Should be faced with considerable pressure to repay the loan. In particular, we see that our overall interest rate is still negative and the pressure will increase if the central bank raises interest rates in the two quarter and three quarters.　　So for anyone with two or three more homes, they may face a sell-off if they add to the central bank's interest rate hike. Moderator: We note that with the Bank of the agreed "interest rate discount period" customers, will be the first to become the target of this wheel.　　There have been comments that this is a bridges performance, what do you think? Ma Guangyuan: It should be seen how the agreement was made. Because according to the bank's own risk assessment, the bank can give you interest rate concessions, but this interest rate concession may set a certain period.　　If the 70 percent interest rate discount was not set, is a contractual agreement, the bank has no right to adjust unilaterally, if the interest rate is set at the time of a year or two years, according to the real estate market conditions and customer risk assessment, the interest rate adjustment, the bank has the right to do so. So I think inAt present, under the condition of increasing real estate risk, the bank makes such an adjustment to the interest rate preferential policy, it is not bridges behavior, it has the right to evaluate its own risk. Of course, I think the rate adjustment should be divided by the circumstances, especially for the first set of mortgages, currently can be from 70 percent regulation to 85 percent I have doubts, I think the current situation of interest rate concessions should still have a pressure, for two sets, three sets of above, you can make such adjustments,　　But for the first mortgage I think a 70 percent discount may be the best option at the moment. Moderator: What do you think the ripple effect of the bank's adjustment of interest rate will be?　　Will it drive other banks to follow up? Ma Guangyuan: Banks may make some adjustments depending on their situation, but the situation is different for each bank. After the new interest rate concessions were introduced on October 27, 2008, the big banks actually lowered their previous stock loans from 85 percent to 70 percent. At present, because the risk of the real estate market is increasing, the bank itself is faced with an increase in the assessment of the risk itself, so I do not think it is possible to exclude other banks from following up.