1. It is not necessarily uneconomical to withdraw the provident fund in advance.
In order to change the embarrassing situation of provident fund, many local governments have also carried out various explorations. Now the provident fund can be used for other purposes besides buying a house with loans, such as renting a house, decorating and even seeing a doctor. However, many people have an idea that the provident fund should be reserved for buying a house in the future, and it is "not cost-effective" to pay rent. In fact, from the perspective of financial management, it is more cost-effective to withdraw the provident fund to rent a house.
Based on these regulations, we can find that those who have no intention of buying a house in the next year or two and will continue to rent can first withdraw the provident fund to pay the rent, and the funds that should have been used to pay the rent can be used for investment.
In the next year or two, when you are going to buy a house with a preferential interest rate loan from the provident fund, you only need to calculate the time and apply in advance, so as not to let the provident fund offset the rent.
The same idea can also be applied to the living expenses allowed by other policies, such as house decoration, decoration, payment of property fees and medical expenses. You can activate the low-interest deposits that you used to sleep in the provident fund account, thus increasing the disposable income around you, and then stop paying until you want to buy a house, so that the provident fund can exert its maximum financial management effect.
2. "annual rush" is really not necessarily more cost-effective than "monthly rush"
There are two ways to repay the loan with the balance of the provident fund account. One is "annual repayment", which directly offsets the loan principal with the account balance in April or September every year; The other is "monthly payment", in which the balance in the account is used to repay the repayment amount of the current month (the principal and interest are paid together). Most people think that it is more cost-effective to write off the principal in one year, thus saving more loan interest. In fact, last year's snapping up may be really uneconomical.
Because the interest of funds in the provident fund account is very low, the first principle of repayment of provident fund is to offset high-interest commercial loans with low-interest deposits of provident fund as much as possible. In portfolio loans, regardless of the year and month, the balance of the provident fund account will automatically give priority to repaying the provident fund loan, and then the commercial housing loan. For Yue Chong, because the monthly payment is fixed, the amount of loans he actually needs to repay in cash is fixed, no matter whether he repays the provident fund loan or the commercial loan first. For Nianchong, after repaying the principal part of a large number of provident fund loans in one lump sum, he will not be able to enjoy the low-interest loan quota in the future. After years of running around, there may be low-interest provident fund loans that have all been paid off, but there are still many high-interest commercial loans.
Sometimes it is more appropriate to extend the loan time.
Due to the limited amount of provident fund loans, most people have to take a combination of "commercial loans and provident fund loans" when applying for housing loans, so many people simply use loans with the same number of years. However, because the interest rate of provident fund loans for more than five years is 2% lower than that of commercial loans for the same period, or even lower than the preferential interest rate of 30%, smart lenders will choose to reasonably extend the term of provident fund loans and appropriately reduce the term of commercial loans. In this way, in the case of the same loan amount and repayment period, a larger proportion of funds can be used to repay commercial loans with higher interest rates first, thus reducing interest expenses to some extent.
In addition, in the current provident fund loan policy, the term of provident fund loan is determined according to the age of the house and the age of the main lender. Therefore, extending the loan life of provident fund has a certain relationship with who will be the main lender. Usually, if the age gap between husband and wife is not big, then the husband will be the main lender and apply for a longer loan period; In families with "old wives and few husbands" or "old wives and few husbands", the younger party is the main lender and can apply for a provident fund loan with a longer term.
(The above answers were published on 2015-10-21. Please refer to the actual situation for the current purchase policy. )
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