“The amount applied for the reservation on that day has been fully booked, please change the reservation date.” Zhang Ying (pseudonym), who lives in Xicheng District, Beijing, recently planned to pay off part of her mortgage in advance, but she saw the prompt on the CCB mobile APP. , she was a little at a loss.
This year, "early loan repayment" has become a hot word. Like Zhang Ying, there are many borrowers who choose to repay their mortgage loans in advance, and the difficulty in repaying the loans that comes with it has become a new problem. Sino-Singapore Jingwei saw on a social platform that many lenders complained about the difficulties banks encountered in repaying their loans early. Some lenders could only make appointments until March next year, and some had to complain to the supervisor before they could repay their loans smoothly.
You also need to grab the credit limit to repay the loan early
Two years ago, Zhang Ying and her husband sold their property and replaced it with a school district house in Xicheng District, Beijing. Excluding the provident fund portion, there are also commercial loans of 2.4 million yuan. This year, seeing poor financial returns and falling stocks, she made up her mind to repay her loan early.
In April and September this year, Zhang Ying repaid part of her mortgage twice through the mobile APP, repaying 460,000 yuan and 60,000 yuan respectively, and also shortened the repayment period from 21 years to 21 years. shortened to 15 years. She roughly calculated that a commercial loan of 2.4 million yuan originally required nearly 1.8 million yuan in interest. After repaying the loan in advance, she could save more than 700,000 yuan in interest.
“I feel a lot more relaxed all of a sudden, and the two repayments went very smoothly, so I plan to save some money and pay it back in advance.” Zhang Ying said.
At the end of October, when she tried to repay the loan in advance again, she found that it was not enough. Zhang Ying recalled that for the first two times, you only needed to enter the repayment amount on the mobile APP. The appointment deduction date will appear below. Just select the date. The appointment date will be about one or two weeks later. But this time the APP reminded her that she could not make an appointment for repayment until November 1st.
After November 1st, she made another appointment for repayment, and found that the scheduled payment date was only one day, and when she clicked in, it showed that the limit was full, but there was no other date option. "After a few days, I opened it again, and there was no need to fill in the repayment amount. Just click on the page for early repayment, and it would show that the amount was full."
In desperation, Zhang Ying posted on a social platform Find the guide on . "There is a post saying that the quota will be released at two o'clock in the afternoon, and you have to squat on the APP. It is the same as buying things on Double Eleven, and the quota is instantly sold. I tried three times, and every time I set the alarm for two o'clock, the quota was gone as soon as I clicked in. I then I called the bank and the staff said that it is difficult to get it on the APP now and asked me to return it to an offline branch after January next year."
Li Panxi (pseudonym) who works in Beijing also encountered a similar situation. problem. In October 2016, she took out a loan of 760,000 yuan to buy her first home in her hometown of Xi'an. The loan period was 30 years, with equal repayments of principal and interest. After several LPR reductions, the monthly payment dropped to about 3,500 yuan.
“I encountered setbacks in the stock market this year, and my fund is not doing well. I roughly calculated the current cash flow of my family, and then checked the remaining loan amount, which is about 670,000 yuan. It is very important for my family to pay off the loan in advance. There is no impact on cash flow. "So, in July this year, Li Panxi began to contact the bank to repay the loan in advance.
What she never expected was that she would encounter "Waterloo" when she contacted the bank for the first time. "Because I couldn't go back to Xi'an, I called the account manager of the bank that applied for the loan at the time, but the other party never answered. Then I finally got through. She said she had resigned and gave me a new contact person. I called this person again. After hearing the purpose of my call, the other party directly replied, 'I'm busy right now, so I'll hang up now.'" Li Panxi said.
About a month later, Li Panxi called her original account manager again, and the other party provided another landline number. This time the staff found her new loan account manager, and the new account manager asked her Repayment options are detailed. "If you repay it all at once, you must go to the bank with the house book or purchase contract. If you repay part of it, you can deposit the repayment amount and one month's monthly payment into the bank card bound to the mortgage, and the account manager will contact you the next day. Help me with the operation. Because I am working in Beijing and can’t go back, I chose to pay back 400,000 yuan first,” Li Panxi said.
“The account manager told me that I can make repayments on my mobile phone, but I really couldn’t find it. In the end, the account manager helped me with the operation,” she said. On November 9, Li Panxi’s mobile APP successfully deducted the payment, and the next repayment amount is 1,688 yuan.
On the 17th, Sino-Singapore Jingwei consulted the Tianjin branch of the Bank of China as a customer. The bank’s account manager said that you need to make an appointment on your mobile phone to apply first, and wait for the SMS notification to operate the repayment in mobile banking according to the above date. That's it. However, the above-mentioned account manager said, "Normal application now takes about 45 days, and appointments made in October will have to be made next year."
However, not all banks have difficulty making appointments. An account manager from a state-owned bank in a province in North China told Sino-Singapore Jingwei that due to the epidemic, there are currently not many customers coming to the bank to apply for early repayment, and they can do it directly without waiting.
The account manager of the Beijing branch of a joint-stock bank also said that the bank does not require an appointment and can repay the loan directly using the bank’s mobile APP without limit.
The account manager bluntly said it was "high pressure"
Since this year, due to factors such as poor investment returns and the lender's own "deleveraging", some customers have chosen to repay their loans early. At the same time, with the multiple reductions of LPR, the interest rates of business loans have also continued to fall, and the phenomenon of "loan relocation" has emerged. Various financial intermediaries advertise on social media to teach customers how to replace high-interest mortgage loans with low-interest business loans.
"There are so many customers who have repaid their loans early this year. We have repaid more than 200 million yuan here. I am under great pressure this year." The account manager of the above-mentioned joint-stock bank said bluntly that customers have repaid too much, and the bank has to work hard. To lend money, "you have to fill in the holes first."
At the 2022 interim results conference, Lin Li, Vice President of Agricultural Bank of China, introduced that a small number of personal housing loan customers choose to repay their mortgage loans in advance, mainly based on the customers' own financial planning, and at the same time, due to the current decline in financial investment yields There is also a certain correlation.
Zheng Guoyu, Vice President of Industrial and Commercial Bank of China, also said at the 2022 interim results conference that a small number of mortgage customers did repay their loans early due to the need to adjust their household balance sheets, but compared with previous years , in fact, this trend is not very obvious. In the first half of the year, ICBC recovered 380 billion yuan from mortgage customer loans, of which 260 billion yuan was early repayment, an increase of 30 billion yuan compared with last year.
On the one hand, customers are repaying their loans in advance, and on the other hand, their willingness to take out loans to buy houses is declining. On November 10, the central bank released financial data for October 2022. In October, new RMB loans from financial institutions were 615.2 billion yuan, a decrease of 211 billion yuan year-on-year.
Looking at the loan structure, in October, household loans decreased by 18 billion yuan, a significant decrease of 482.7 billion yuan compared with October last year. Among them, short-term loans decreased by 51.2 billion yuan, a decrease of 93.8 billion yuan year-on-year; medium and long-term loans to residents that are highly related to real estate increased by only 33.2 billion yuan, a decrease of 388.9 billion yuan year-on-year.
China Merchants Macro Zhang Jingjing’s team pointed out that if the data from January to October are totaled, medium and long-term loans to the residential sector will increase by about 2.8 trillion yuan less year-on-year, and the growth in new credit to the residential sector is indeed weak.
Data released by the National Bureau of Statistics on November 15 also showed that from January to October 2022, among the funds in place for real estate development companies, deposits and advances were 4.1041 billion yuan, a year-on-year decrease of 33.8%; personal mortgages Loans were 2,015 billion yuan, a year-on-year decrease of 24.5%. These data all show that fewer people are taking out loans to buy houses.
Jin Tian, ??a senior researcher at the Institute of Digital Economy at Zhongnan University of Economics and Law, told Sino-Singapore Jingwei that due to the epidemic and other complex factors, the overall demand for credit has weakened recently, and banks have been unable to acquire high-quality new customers and issue new low-risk loans. The difficulty increases. From the perspective of maintaining a stable business scale and continuing to obtain interest income, banks and their staff have incentives to discourage and restrict customers from repaying loans in advance, or set various additional conditions for customers to repay loans in advance. For example, when a mortgage customer redeems and sells a house, the bank It is required to guide buyers to continue to choose mortgage loans from this bank, otherwise it will charge default fees to customers who repay their loans early.
Li Wanfu of Rong360 Digital Technology Research Institute said in an interview with Sino-Singapore Jingwei that customers' early repayment of loans reduces the bank's credit risk and increases the bank's liquidity. However, after customers repaid their loans in advance, the bank's mortgage loan scale declined, and it was necessary to find new sources of mortgage loans. In the current market environment, banks have relatively abundant liquidity. As a high-quality asset, mortgage business has fierce competition for resources among banks. Moreover, the interest rates in the mortgage market have been declining. Even if you invest again, the rate of return on funds will be lower than before.
Prepayment is not suitable for everyone
Prepayment is a way for some customers to restructure their debts, but it is not suitable for all lenders.
Li Wanfu introduced that when customers plan to repay their loans in advance, they must first systematically sort out their asset situation to make sure that they are not blindly following the trend. Currently, they have sufficient idle funds and no better financial management channels; secondly, Understand the repayment policy of your mortgage bank, such as whether there are liquidated damages, whether it can be repaid in batches, whether there are options for early repayment (the period remains unchanged and the amount is reduced, or the amount remains unchanged and the period is reduced), etc., and choose the best after comprehensive consideration ; In addition, if it is a portfolio loan, the commercial loan portion will be repaid first.
Li Wanfu further pointed out that if customers have limited idle funds and are tempted by advertisements for low-interest loan replacement for business loans or consumer loans through certain channels, they must fully understand the risks and hazards of this replacement method and make a prudent decision; In addition, some users have a short remaining loan period and initially chose the repayment method of equal principal and interest. Most of the interest has been repaid in the past few years. The remaining loan amount is mostly principal, so there is no need to repay it in advance. .
In Jintian’s view, respecting customers’ financial arrangements and providing them with convenience will, in a certain sense, be more conducive to improving customer stickiness and shaping brand value, thereby creating opportunities for acquiring new customers and new funds. favorable conditions.
At the same time, Jin Tian said that as a loan customer, you should learn more about the bank's terms and requirements for early loan repayment, especially make your own arrangements based on the process timing, handling fees, etc.