What is provident fund?

What we usually call "five insurances and one gold" refers to the provident fund, also called the housing provident fund. You can tell by the name that it is closely related to the house.

Housing provident fund is paid by individuals and units in the same proportion, and the proportion in different cities is also different. However, the provident fund does not have a unified account like medical insurance and endowment insurance, and all the contributions paid by units and individuals enter personal accounts.

What's the use of provident fund?

Some people here may ask: What is a long-term housing savings fund? What can this housing provident fund be used for? Want to buy a house, what can the provident fund do? If you buy a house and are ready to pay for it, there are generally three situations: full payment, application for provident fund loan and application for commercial loan.

If you are a local tyrant who buys a house in full, don't waste the provident fund. You can apply for a one-time withdrawal to deduct the house payment.

Provident fund loan

Provident fund loans can be applied for 30 years, and commercial loans generally do not exceed 30 years. The provident fund can lend up to 90% of the house price, and commercial loans can only lend 70%-80% of the house price. The provident fund is limited by the maximum loanable amount. Maximum loanable amount = (monthly household income-urban basic living standard)/monthly loan repayment amount per 10,000 yuan during the loan application period. The maximum amount of provident fund loans in various regions has been set.

Provident fund to buy a house

Everyone just needs to remember that if you plan to buy a house, if it is full, you can take out the provident fund to deduct the house payment. Loan to buy a house, you can use provident fund loans. The interest rate is so much lower, but all you save is your own money. Please consult the local provident fund center before buying a house.