1. The expected annual interest rate of the loan is different. The benchmark expected annual interest rate of commercial loans is that commercial loans are divided into two repayment methods: equal principal and equal principal and interest. Simply put, equal principal and interest means monthly repayment. The amount of the payment is the same, and the principal payment for the equal amount is about less every month, but the pressure is very high at the beginning. The benchmark expected annual interest rate for provident fund loans is as follows in Beijing: a. The first home is basically the benchmark expected annual interest rate, but some properties can give discounts due to different cooperative banks. b. The second house is basically twice the expected annualized interest rate. For example: a first home loan of RMB 800,000, 30 years, calculated based on the benchmark expected annualized interest rate. Commercial equal principal and interest payments require interest repayments of RMB 10,000, and provident fund loans require interest repayments of RMB 10,000.
2. Commercial loans with different amounts: the down payment for the first house requires at least 30%, the down payment for the second house requires at least 60%, and the loan is suspended for the third house. (Proof of income is required to be issued to twice the monthly repayment amount) Provident fund loan: The first house requires a down payment of 30% (in Beijing, an ordinary residence under 90 square meters can be 20%), and the second house requires a down payment of at least 60% ( Each province has a limit on the amount of provident fund loans. Beijing has slight differences based on credit ratings, ranging from 800,000 to 1.04 million), and loans for third homes are suspended. (Mainly refers to residential properties, regardless of whether there are one or two commercial or residential properties, the down payment must be at least 50%).
3. The loan process is different. The process of commercial loans is: both parties sign a sales contract-evaluation-bank interview-loan approval-transfer-mortgage registration-loan. The process of a provident fund loan is: both parties sign a sales contract-evaluation-preliminary review by the provident fund management center-interview-signing-transfer-loan-mortgage registration.
4. Different repayment methods Commercial loans: equal principal, equal principal and interest, biweekly payment, etc. Provident Fund Loan: Free repayment. Although there are many choices for commercial loan repayment methods, they still have certain limitations compared to free repayment methods. The "humanity" of provident fund free repayment is reflected in the fact that borrowers are relatively free to set the minimum monthly repayment amount, which is unmatched among the many types of repayment methods for commercial loans.
5. The approval time is different. Commercial loans take about 20 working days, and provident fund loans take about 40 working days. Commercial loans are faster than provident fund loans.
6. Different sources of loans. The source of commercial loans is mainly public funds raised by commercial banks and other lending institutions, while provident fund housing loans are funds paid by provident fund collectors.
7. Different user groups Commercial housing loans are open to all eligible members of the public, while provident fund loans are only open to provident fund payers.
8. Different uses of interest. The interest on commercial housing loans is the profit from business activities and belongs to the relevant investors, while the interest on the provident fund has a policy-specified purpose and can only be used for the construction of affordable housing.
9. Different approval agencies. Commercial mortgage loans are mainly approved by banks, and the decision-making power rests with the bank; provident fund mortgages need to be approved by the provident fund management center, and the decision-making power rests with the provident fund management center. The bank is only the executive agency.
10. Different commercial loans for second homes have more policy restrictions on second home loans, and the expected annual interest rate is higher; while provident fund loans are basically not affected by the policies for second home loans, and can also enjoy preferential treatment Expected annual interest rate.