The provident fund can only be used twice to buy a house. For employees, only the first and second time they can buy a house can use the provident fund. In addition, the provident fund loan can only buy one house at the same time, that is, if you want to use the second time, you can buy a house. The second provident fund loan requires that the provident fund loan for the first home be paid off first. Relatively speaking, there are still many restrictions, and not many people can use provident fund loans twice.

What are the advantages of provident fund loans

1. The loan interest rate is lower than that of commercial loans

The base interest rate of provident fund loans is much lower than that of commercial loans. Currently, the interest rate is 2.75% for less than five years and 3.25% for more than five years; the benchmark interest rate for commercial loans is 4.90% for more than five years. When buying a house, using a housing provident fund loan can save buyers a lot of house purchase costs.

2. Small down payment

The down payment ratio of provident fund loans to buy a house is lower than that of commercial loans. For example, if you buy a first house in Shanghai, the down payment is 20% for an area of ??less than 90 square meters, and 30% for an area of ??more than 90 square meters. If you buy a first house with a commercial loan, the down payment is 35%. The down payment ratio for a provident fund loan for a first home in Beijing is 20%, and the down payment ratio for a commercial loan for a first home is 35%.

3. The monthly repayment amount is small

I need to remind everyone that the length of commercial loans in different regions is different. The loan length of commercial loans in various districts across the country can only be 30 years. Moreover, most older second-hand houses can only be loaned for 10 years, with high loan interest rates and high monthly payment pressure. Compared with commercial loans, provident fund loans not only have a shorter repayment time, but also have much lower repayment interest.

What are the disadvantages of provident fund loans?

1. There are loan limits

Although the interest rates of provident fund loans are much lower than those of commercial loans, why are there still people willing to give up? Do you also need to apply for a commercial loan for a provident fund loan? The main reason is that there is a maximum amount limit for provident fund loans. Although the maximum amount applied for by individuals and couples is different, in first- and second-tier cities, even if the provident fund loan reaches the maximum amount, it is not enough to buy a house. .

2. The payment time is limited

If a home buyer wants to use a provident fund loan to buy a house, he first needs to pay the housing provident fund for a certain number of years. Different cities have different deposit time for provident fund. Some cities require borrowers to continuously pay provident fund in full for more than half a year (inclusive) and the provident fund account is in normal deposit status. Some cities require borrowers to make continuous deposits for one year (inclusive). Only the above can get a loan.

3. The loan cycle is too long

In addition, the provident fund loan process is relatively complicated, resulting in a longer loan cycle. If the home buyer is in a hurry to buy a house, then the provident fund loan is not realistic. , many home buyers ultimately choose commercial loans.

4. The account balance affects the loan limit

The provident fund account balance will affect the loan limit. If the account balance is too small, the loan limit that can be applied for will be lower, so when applying Before applying for a provident fund loan, it is best not to touch the balance of your provident fund account. However, not all urban provident fund loan limits are affected by the account balance.