When buying a house, the biggest difference between using a housing provident fund loan and not using a housing provident fund loan is the interest rate. In contrast, housing provident fund loans have much lower interest rates than commercial housing loans.

For example: For the same 10-year housing provident fund loan of 100,000 yuan and a commercial housing loan, the annual interest rate of the former is 4.5 (after the interest rate adjustment on July 6, 2012), and the annual interest rate of the latter is 6.55. The interest difference between housing provident fund loans and commercial housing loans was ignored by many borrowers in previous years when mortgage interest rates were low and declining.

According to Article 8 of the "Housing Provident Fund Management Regulations": municipalities directly under the Central Government, cities where the people's governments of provinces and autonomous regions are located, and other cities with districts (prefectures, prefectures, leagues), shall establish a housing provident fund management committee. As the decision-making body for housing provident fund management. Among the members of the Housing Provident Fund Management Committee, the person in charge of the people's government and the heads of relevant departments such as construction, finance, and the People's Bank of China, as well as relevant experts account for 1/3, trade union representatives and employee representatives account for 1/3, and unit representatives account for 1/3. :

Advantages of provident fund loans:

1. The interest rate of provident fund loans is much lower than that of commercial loans in the same period;

2. Housing provident fund loans have a wide range of available properties. , second-hand houses have fewer restrictions on the age of the house; they are not restricted by the developer's bank account, allowing the borrower to freely choose the repayment bank;

3. If you repay the loan in advance, you can choose part or all of it. , no appointment is required; after partial repayment, you can choose to shorten the repayment period, keep the repayment amount unchanged, keep the repayment period unchanged, reduce the repayment amount, extend the repayment period, increase the repayment amount, etc.; you can also choose Use the housing provident fund to repay the loan monthly and use the housing provident fund to offset the loan during the one-time repayment.

Disadvantages of provident fund loans:

1. You must pay a certain period of provident fund according to local policies before you can apply for a provident fund loan.

2. The provident fund loan amount is limited.