The loan contract must be changed. According to the notice triggered by the central bank, all mortgage contracts must be changed. Therefore, the change notice of the bank must be changed, because the interest formation method of the mortgage contract is completely different from the past, so the loan contract needs to be revised again.
The original loan contract was formed by floating on the basis of the central bank's benchmark interest rate, and now it is changed to form a loan interest rate by adding points according to the market quotation interest rate.
Therefore, the loan contract must be changed.
You've changed. It's good for you. The modification of the loan contract can be said to be beneficial to you. At present, the deposit and loan interest rates in Europe, America and other countries are very low, and some European countries even implement zero interest rates. Therefore, it is expected that the loan interest rate in China may also decrease in the next decade.
So your current interest rate is 5.63%, and it is more favorable to change it to a floating interest rate now. Now LPR is 4.75%, so your interest rate formation method is LPR+0.88%. If the LPR interest rate drops in the future, your loan interest rate will also drop, so you can pay less interest. For example, if the LPR drops to 4.5% in the future, your real loan interest rate will drop to 5.38%.
Therefore, on the whole, the future loan interest rate may drop, so if you change to floating interest rate now, if the future LPR interest rate drops, your loan interest rate will drop, and you can pay less loan interest.
Conclusion To sum up, your current interest rate is 5.63%, so you should change it to floating interest rate now. In the future, deposit and loan interest rates may still fall. In this case, after you change to floating interest rate, your future loan interest rate may drop, and the interest you actually pay may drop a little.