Currently, there is no such thing as converting commercial housing loans into provident fund loans. Because commercial housing mortgage loans include commercial loans and provident fund loans, if the commercial housing application is a commercial loan, the commercial loan can be converted into a provident fund loan if certain conditions are met.

What are the requirements for converting a commercial loan into a provident fund loan?

1. Meet the requirements for local housing provident fund loans. Under normal circumstances, applying for a housing provident fund loan requires that the local provident fund has been paid continuously for more than six months and the personal provident fund account is in a deposit status. Generally, applicants need to be the original lender or the spouse of the original lender, have a good personal credit record, and have no problems with their credit report to be considered eligible for housing provident fund loans. Requirements vary from place to place. For specific details, please refer to the regulations of the local housing provident fund management center.

2. The house purchased has already obtained the house ownership certificate, because the loan issuing institution requires the certificate of title as collateral.

3. With the consent of the original loan issuing institution. Applicants need to apply to the loan issuing institution to settle the loan. Once the original lending institution agrees, they can apply for a commercial loan to provident fund loan

4. The amount of the commercial loan to provident fund loan shall not exceed the local housing provident fund management The amount specified by the center. The amount of the commercial-to-public loan applied for should be within the maximum loan amount of housing provident fund loans announced by the local housing provident fund management committee before the conversion procedures can be processed.

Is it necessary to convert a commercial loan to a provident fund loan?

If your commercial loan is in the early stages of repayment, for example, the loan has been for 20 years and you have only repaid it for 2 or 3 years, then you can convert it to a provident fund loan. It is necessary because it is more cost-effective. But if it is in the later stage of repayment and has been paid for more than ten years, then it is not necessary.

In addition to the later repayment period, if you plan to pay off the loan early, there is no need to convert the commercial loan into a public loan. Because the conversion of a commercial loan to a public loan generally depends on the contract of the original Shendai Bank, and it can only be converted to a provident fund loan with the consent of the bank, and certain fees will be incurred in the process of converting a commercial loan to a public loan, which is not cost-effective. Therefore, if you plan to repay the loan in advance, there is no need to negotiate for a public transfer.