Many people know that buying a house through provident fund will reduce the monthly house payment, and people who work in many companies are also keen to pay provident fund. But why do some people choose not to use provident fund loans when buying a house? Later, I learned that they were 1 suite and were not prepared to use provident fund loans. The first suite does not use provident fund loans. What are the benefits of buying a house? Let's meet.

Benefits of not using provident fund loan for the first suite

The advantage of not using provident fund loans for the first suite is that users can apply for commercial loans for the first suite, and they can apply for provident fund loans for the second suite regardless of whether the commercial loans have been settled. The first suite applies for provident fund loans, and the second suite must wait for the first set of loans to be settled before applying for provident fund loans. Therefore, users who have the idea of buying a second suite with a loan can apply for a commercial loan for the first suite. Of course, it is up to the user to decide whether to apply for a commercial loan or a provident fund loan for the first suite.

What are the benefits of buying a house with provident fund?

1. The interest rate of provident fund loans is lower than that of commercial loans. Within 5 years (including 5 years), the monthly interest rate is 2.75%; For more than 5 years, the annual interest rate is 3.25%. The state stipulates that the amount of provident fund loans shall not exceed twice the amount of housing provident fund paid by borrowers within their retirement age. The provident fund loan period is long. The borrower's loan period can be calculated to be 70 years old, not more than 30 years.

2. The bank collects and repays the provident fund in March each year, and the amount collected shall not exceed 12 times of the monthly repayment amount of that year. In other words, the provident fund you pay can not only apply for a loan with lower interest rate, but also help you repay part of the loan amount. You can repay the loan in advance. Housing provident fund loans can be repaid in advance after half a year of normal repayment. In other words, you can repay in part or in full in advance, and there is no penalty for prepayment. The prepayment policy of provident fund loans is loose, and it is not limited by time, amount and times. The borrower can repay the loan in advance at any time without charging the borrower any fees, while commercial loans generally charge a certain penalty.

For the benefits of not using provident fund loans for the first suite, what are the benefits of buying a house with provident fund? After reading the introduction above, you should already know the answer. In fact, the mortgage interest rate of 1 house is still favorable, and it varies according to the preferential policies of different cities, but when you buy a second house, it will be higher than 1 house. At this time, it will be more cost-effective to borrow through the provident fund.