Many Chinese banks have announced that they will be launching inquiry services for existing mortgage interest rates, allowing borrowers to check and potentially adjust their rates. Starting from September 25, major banks such as China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China will be providing these services to their customers.
China Construction Bank has already launched an “Existing Mortgage Interest Rate Adjustment” portal on its mobile banking app and the “CCB Smart Personal Loan” applet. Through this portal, borrowers can check if their existing mortgage loan is a first home loan, as well as their loan balance and current interest rate level. However, this portal only supports inquiry functions and does not allow users to make changes or perform other operations.
China Construction Bank has stated that users who have first-time home loans and meet the adjustment conditions do not need to apply. The bank will automatically make batch adjustments on September 25, 2023, and notify users through text messages. Users can also access the inquiry portal to learn about the interest rate adjustment results and the latest repayment plans.
However, there are two situations where borrowers need to actively apply. The first is if they have a fixed-rate loan or a loan priced at a benchmark interest rate. The second is if the loan does not meet the first-home standards when it was issued, but the current housing situation qualifies as a first home. In such cases, borrowers can check relevant information through the bank and apply for adjustments starting from September 25. If the loan status is found to be for a second home, but the actual housing situation meets the first-home standards, the user can provide the necessary certification materials to the bank, and adjustments will be made according to the rules announced on September 7.
Industrial and Commercial Bank of China and Agricultural Bank of China will also be launching similar inquiry services soon. Both banks will actively lower interest rates in batches or accept self-service applications from customers starting from September 25. ICBC expects to launch the function for querying the status of first or second home loans on its mobile banking platform, and Agricultural Bank of China will provide the service through various channels such as mobile banking, loan agencies, business outlets, and their customer service line.
Overall, these inquiry services for existing mortgage interest rates aim to provide borrowers with more transparency and the opportunity to potentially adjust their rates. By launching these functions, banks are aiming to support their customers in managing their mortgage loans effectively.