Do you have to wait in line to pay off your mortgage early?There are bank appointments until May
Reason: The interest rate of some existing housing loans is relatively high, and the income from investment and financial management is lower than expected. Reminder: It is not appropriate to follow the trend blindly
Never imagined that there would be a queue for mortgage repayment! On February 8, the reporter learned from a number of banks in Changsha that the number of people applying for early repayment of mortgages has increased sharply recently. There is a shortage of quota for early repayment of mortgages, and there is a need to wait in line. Even if you apply now, some banks can make an appointment. Arranged until May of this year.
Pan Xianxuan, all-media reporter of Huasheng Online
[Survey]It takes two or three months to repay the mortgage in advance
On February 1, Ms. Bian, a citizen of Changsha, was notified that the “business-to-business” loan she applied for had been approved by the Changsha Housing Provident Fund Management Center, which made her very happy.
“My mortgage was handled in 2018, and there are still nearly 700,000 yuan in outstanding loans. The repayment period is 24 years, and the interest rate is 5.13%. The loan interest rate of the provident fund is only 3.1%. Saved more than 300,000 yuan in interest.” The Provident Fund Management Center gave Ms. Bian a month to pay off the commercial loan and then apply for a provident fund loan. But was told to wait at least 2 months before the quota.
“The bank’s explanation is that there are too many people applying for repayment recently, and the amount of early repayment approved by the provincial branch is limited every month, so it needs to be queued.” Ms. For the mortgage repayment business, it shows that the earliest time to make an appointment is mid-April. Regarding this situation, she is very anxious and does not know how to deal with it.
Mr. Liu from Changsha is also worried about the early repayment of the mortgage. He handles the mortgage business in a large state-owned bank. , many people are queuing up to make an appointment here, and now the time to make an appointment is May.”
On February 8, the reporter consulted a number of bank outlets in Changsha by phone, and found that the large state-owned banks in Changsha generally had queues for early repayment of mortgages. If you want to repay the loan in advance, you have to wait two to three months. The staff said that the bank’s monthly mortgage repayment amount has not changed much compared with previous years, but the recent surge in customers applying for early repayment has led to difficulties in applying and queuing up for appointments. Compared with large state-owned banks, many joint-stock banks have much less housing loan business volume and customers in Changsha. It is not difficult to apply for early repayment of housing loans, and there is currently no queuing up for appointments.
[Analysis]Why did the “mortgage repayment in advance” hit a climax?
From the “10,000 hard to find” loan amount to today’s early repayment of loans, why has the mortgage family changed so much?
Yan Yuejin, Research Director of the Think Tank Center of E-House Research Institute, said that on the one hand, the interest on loans was high before, and home buyers hoped to reduce costs by repaying the loan in advance; The upside-down income between them has given some home buyers the desire to repay their loans in advance.
According to Dong Ximiao, the chief researcher of China Merchants Union, the main reason for the recent “prepayment wave” of housing loans in many places lies in the borrowers. Affected by the economic downturn and repeated epidemics in recent years, the job instability of residents has increased, the income of some residents has declined, the demand for investment and consumption has been sluggish, and the expectations for the future are unclear. Some borrowers reduce the pressure on loan repayment and reduce the burden of housing consumption by repaying all or part of the loan in advance. At the same time, since last year, the fluctuations in my country’s financial market have intensified. Bank financial products, which have always been stable, have been “broken.” The investment income of ordinary residents has dropped significantly. In addition, the high interest rate of some existing housing loans is also one of the reasons why borrowers repay early.
The reason for the difficulty in repaying the loan, the industry believes, is mainly because the bank itself relies on the interest rate difference between deposits and loans to make profits, and the mortgage business is a high-quality business with a low default rate and sufficient collateral. Banks are not willing to repay customers in advance. loan. In addition, large-scale early repayment of loans will disrupt the bank’s liquidity plan arrangement, which is also one of the reasons why banks are not willing to accept early repayment.
remind
Repayment in advance requires a rational choice
It should be noted that for individuals, early repayment needs to be combined with the actual situation of the individual, and it is not appropriate to follow the trend blindly.
Dong Ximiao said that the most direct way to judge whether a personal loan needs to be repaid in advance is to see whether the investment income can cover the loan interest. If the return on investment is higher than the loan interest rate, consider using more funds for investment; on the contrary, you can consider repaying the loan in part or in full while leaving enough funds for your own life, pension and daily expenses.
From the perspective of repayment methods, generally speaking, the repayment method of equal principal and interest pays more principal and less interest in the early stage, and it is more cost-effective to repay in advance; If the loan is low, if half of the repayment period has passed, it is actually unnecessary to consider early repayment.
For provident fund loans, since the interest rate is significantly lower than the general loan interest rate in the market, early repayment may not be considered.