Portfolio loans require that the loan terms must be consistent, so one loan cannot be for 20 years and the other for 30 years. The loan term of the combination loan shall be subject to the shorter loan term. For example, a user's commercial loan can be extended for 25 years, but a provident fund loan can only be extended for 20 years, and a portfolio loan can only be extended for a maximum of 20 years. Of course, portfolio loans are applied for separately when borrowing, and repayments also need to be carried out separately.

Combined loans are usually used when the provident fund loan limit is insufficient and the user cannot increase the down payment amount. At this time, the user can apply for a commercial loan to make up for the shortfall in the provident fund loan limit.

Things to note when buying a house with a combination loan

1. Only provident fund depositors can apply for a combination loan

A combination loan includes provident fund loans and commercial loans. This way, once the home buyer needs to apply for a combination loan when buying a house, the home buyer must pay the provident fund in full and on time in the place where the house is intended to be purchased, and the provident fund account is still in normal payment status.

2. Use the provident fund loan

When a house buyer applies for a combination loan, the provident fund will definitely be used. Then the house buyer can use the provident fund loan first and extend the loan as much as possible Term, while shortening the term of commercial loans to a large extent, so as to reduce monthly repayments and save loan costs.

3. Repay the loan before the repayment period. You should repay the commercial loan first

Nowadays, there are quite a lot of borrowers who want to repay the loan in advance after applying for the loan. If the loan If you are applying for a portfolio loan, then if you want to repay the loan before the repayment period, you should give priority to repaying the commercial loan, because the interest rate of the commercial loan part of the portfolio loan is higher than that of the provident fund loan. If you repay the commercial loan first , borrowers can save a lot of mortgage interest.

4. Determine the loan amount

When you take a loan to buy a house, you must determine the loan amount you want, especially after you choose a combination loan. It is even more important to determine your loan amount, because once the provident fund portion of the portfolio loan is determined, it cannot be changed. Therefore, the loan applicant and his or her spouse need to go to the provident fund management center to check the maximum loan amount, and determine the final application based on their own circumstances. The loan amount, the maximum loan amount of the portfolio loan, is determined by two aspects, namely the maximum provident fund loan amount and the maximum loan amount of the commercial loan. The lower of the two is the final loan amount of the portfolio loan.

5. Choose a repayment method that suits you

For home buyers who have applied for a combination loan, when applying for a loan by themselves, they should consider their subsequent repayments. Think about the repayment method, and be sure to determine the repayment method that suits you, because once the repayment method is agreed in the contract, it generally cannot be changed during the entire loan period.