How Much Will PBOC's Rate Cut Save Homebuyers?

Chinese homebuyers with a 20-year mortgage can save 234 yuan per month for every 1 million yuan they borrow thanks to the PBOC rate cut.

Interest rates on loans of more than 5 years have dropped from 6.55% to 6.15%, or a 6% discount. Recall that at the end of September, the big news was that the PBOC would allow banks to cut their rates as much as 30% below benchmark, but the largest discounts offered in most cities was 10%.

For people tapping the public housing funds, interest rates have been cut from 4.5% to 4.25%.

Before the interest rate cuts, a homebuyer with a ¥1 million mortgage from a commercial bank would owe ¥7485.2 per month for 20 years. After this cut, it drops to ¥7251.12, a savings of ¥234.08 each month and ¥2808.96 annually.

iFeng: 央行22日起降息 房贷百万20年月供减负234元

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