On August 12, the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Postal Savings Bank of China all issued announcements about switching the benchmark for pricing the floating-rate individual housing loans to LPR.
According to the announcements, from August 25, the benchmark for pricing the floating-rate individual housing loans that meet the conditions will be switched to the LPR in batches.
Also, the announcements confirm that if there is any objection to the result after the switch is completed, the mortgagor can negotiate with the handling bank or the loans can be automatically transferred back through relevant channels before and on December 31, 2020.
On July 20, the Bank of Communications has already taken the lead to announce switching the benchmark for pricing the individual housing loans to LPR from August 21. This means that the six major state-owned banks in China are all accelerating the conversion of stock mortgage interest rates to LPR.
According to an ICBC staff, the conversion will be automatically operated through the system of the bank. If the customers do not want to switch, they can register before and on August 24. For those whose loans have already been converted, they can negotiate with the bank before the end of the year.