What are the advantages of using provident fund?
1, exempt from personal income tax
Provident funds are exempt from personal income tax. The part paid by the unit or enterprise for the employees can be charged before tax. At the same time, employees can apply for taking out the housing provident fund in advance with legal and valid proof materials, but this must be a loan enjoyed by employees who have paid the housing provident fund, or in the case of decorating their own houses.
2. The loan interest rate is low.
The interest rate of housing provident fund loans is 2.75% for less than five years and 3.25% for more than five years, which is much less than that of commercial loans. This means that housing provident fund loans have many advantages over commercial loans, such as saving money, flexible repayment and long service life. General commercial loans can reach about 70%, and the down payment pressure is relatively high. Provident fund loans can reach up to about 80%, and the requirements for housing age and fixed number of years are relatively low.
3. The funds can be doubled.
Individual employees pay within the range of 5% to 12% of their salary, and the unit subsidizes them in the same proportion. Therefore, after individual employees pay the housing provident fund according to regulations, the funds will double.
4. It can be used as a pension.
After employees retire, they can withdraw all the principal and interest balance of the housing provident fund at one time with relevant supporting materials such as retirement, which is equivalent to accumulating a considerable pension for each employee and can guarantee the quality of life in their later years.
You can repay the loan in advance.
Housing provident fund loans can be repaid in advance after half a year of normal repayment. You can repay in part or in whole in advance, and there is no penalty for prepayment.
6, can be extracted in advance
Workers who purchase, build, renovate or overhaul self-occupied houses with independent property rights, or suffer from serious diseases that cause difficulties in life, or enjoy urban minimum living allowance. , you can withdraw the housing provident fund in advance with relevant legal and valid proof materials.
What should I pay attention to when using provident fund loans?
1, loan application materials should be prepared in advance.
As we all know, the procedures for provident fund loans are cumbersome and the approval period is long. In order to shorten the loan approval time and get the loan smoothly, the borrower had better consult the local housing provident fund management center for the required materials and make preparations in advance.
2. Pay attention to the loan conditions
The general provident fund management center requires that the provident fund loan time can be continuously deposited for 6 months or more. Of course, some places require 12 months or more. To apply for housing provident fund loans, you should correctly evaluate your repayment ability, whether you have a down payment of not less than 30% of the house price, and your ability to repay the principal and interest every month.
3. The down payment ratio should not be too low.
Some property buyers want to pay less down payment in order to use more loans, but the down payment ratio is too low, and the application for provident fund loans will also be rejected. Generally speaking, the down payment ratio of the first home provident fund loan is 20%!
4. The provident fund cannot be used as the down payment of the house.
Here, we need to know the consumption principle of provident fund: consume first and then withdraw, that is to say, only after buying a house can we go through the withdrawal procedures of provident fund to ease the repayment pressure of buying a house.
5. Keep personal credit information good.
Good personal credit information is a prerequisite for borrowers to obtain provident fund loans. If individuals are bad, both provident fund loans and commercial loans will be affected, so buyers must pay attention to keeping personal credit information!
Although at present, all localities are allowed to use provident fund loans to buy houses, after all, the specific conditions between cities are different, so there are often some differences in the conditions that buyers need to meet. The above small series summarizes some conditions that housing provident fund loans need to meet when buying a house. Of course, the actual situation still needs to be based on the regulations made by the local housing management department. It is suggested that buyers can consult first and then see if they meet the housing provident fund loan conditions.