Recently, prepayment has been widely discussed in major media, and the popularity remains high.
According to the data, among the 42 A-share listed banks, only 13 had increased their personal housing loan balances in the first half of this year, while the rest of the banks had declined.
Even the Postal Savings Bank, one of the six major state-owned banks, has taken the lead in this "bank card deficit wave" and has become the only bank to achieve growth.
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Let's show you a few data, I guess you will have an intuitive feeling.
According to statistics, compared with the end of last year, the balance of personal housing loans decreased by 317.128 billion yuan, a decrease of 0.92%.
Source: China-Singapore Jingwei.
In simple terms, this situation is mainly due to the correction in the real estate market and the increase in the size of prepayments.
In recent years, many people have been reluctant to carry the heavy burden of high housing loans, and have chosen to repay their loans in advance.
This trend has been taking shape since 2023.
For the first time in history, the balance of personal housing loans fell for the first time in history, down 1.6% year-on-year, according to the central bank.
This means that the personal housing mortgage loan business, which was once regarded as a "golden job bowl" by banks, is gradually shrinking.
However, a netizen on the Internet aimed at this business opportunity early and shared her story of prepayment of the loan!
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However, the quality of prepayment has always been a topic of opinion, and there is no standard answer.
After all, everyone's situation is different - how much is the loan interest rate, career planning, income structure, long-term capital planning, financial investment ability and psychological tolerance, etc., all have to be taken into account.
Moreover, even if you want to pay it back, you can't pay it back if you want to.
After submitting the application, you still have to see where you want to be ranked, whether there is a quota, and sometimes you have to pay liquidated damages, which is like a ticket grab.
Among them, there is a big background: a few years ago, the bank wealth management and the yield of Yu'e Bao were not bad, the property market was also rising, and buying a house was simply a profitable business.
At that time, it was not a problem to invest the spare money in your hands to make a big business, make a lot of money and then repay the loan, or buy two or three houses, and only a very few people repaid the loan in advance.
However, today's situation is completely different, affected by the domestic and foreign environment, interest rates are falling, the property market is regulated, everyone's income is not as expected, investment is not improving, it is better to pay off debts as soon as possible, relaxed and happy.
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So, is it worth it to pay off your mortgage early?
This has to be analyzed on a case-by-case basis.
For those who take out loans during peak mortgage interest rates, early repayment can alleviate some of the interest burden.
If you have a CPF loan or a home buyer with a lower interest rate, it may be the warmth of the state and the wool fun of the bank.
The issue of interest rate differentials between wealth management and mortgages should also be considered.
Can the cash retention cover the loan interest?
If you can't make a good income with spare money, it is naturally cost-effective to repay the loan early.
Friends who are inflationary also have to estimate their future income
Some people simply prefer to be debt-free and choose to pay it off all at once as long as they have enough money, while most people choose to make partial early repayments to reduce their monthly payments or shorten their tenure, each with its own advantages and disadvantages.
In short, friends who want to repay the loan in advance must depend on their own financial situation.
Don't blindly follow the trend, plan reasonably, find out the market changes, and make prudent decisions based on your own situation is the king!