In the past year, house prices have dropped a lot, and many friends have taken a fancy to this and began to consider buying a house. However, it is still difficult for most people to buy a house in full, and when applying for a housing loan, they do not have provident funds, so they can only choose commercial loans with the highest interest rates to ease the pressure of buying a house. So what is the most cost-effective way to repay a commercial loan to buy a house? Are the interest rates on commercial loans to buy a house high? Let’s find out together today!

First of all, what we need to understand is that if you want to buy a house with a commercial loan more cost-effectively, it is important to choose the right repayment method. There are currently two main repayment methods available for everyone to choose from, namely equal principal and interest and equal principal. Equal principal and interest payments refer to repayments of the same amount each month, with interest accounting for the majority and the principal repayment gradually increasing each month. Equal principal payments mean that the same amount of principal is repaid each month, but the amount of interest gradually decreases over time. For long-term loans, the equal-amount principal repayment method is more cost-effective, because the total interest is less, and the interest saved each year can also be used to shorten the repayment cycle. However, this method has high initial repayment pressure, so it is more suitable for early-stage loans. Choose it if you make a deposit and have a lot of room for growth.

Secondly, regarding commercial loan interest, it will definitely be much higher than provident fund loans, and many aspects will affect commercial loan interest rates. Such as market interest rates, loan costs, customer credit ratings and many other factors. If your credit rating is higher, you can get a lower interest rate; if the bank you choose has preferential repayment activities or you ask for early repayment, you may also enjoy a lower interest rate. In addition, the repayment terms of commercial loans for home purchases usually range from 5 to 30 years. If you choose a longer repayment term, the monthly repayment will be relatively lower, but the total interest expense will be more; if you choose a shorter repayment term, the monthly repayment will be relatively higher , but the total interest expense will be relatively small.

At the end of the article, one thing that everyone needs to pay attention to is that when purchasing a house with a commercial loan, you need to pay a certain loan processing fee and mortgage registration fee to the bank. These fees usually include appraisal fees, guarantee fees, notary fees, insurance fees, etc. The specific amount may vary according to the bank and the price of the house. You must ask clearly before taking a loan to avoid unnecessary trouble.