Chinese law stipulates that provident fund can be used to buy a house in another place, according to the current provident fund withdrawal policies. Qualified employees can purchase self-owned housing with property rights outside the urban area, and can withdraw their own and spouse's provident funds. Qualified employees generally refer to those who have employment certificates or household registration certificates in the city where the purchased housing is located. For provident fund loans, employees can usually apply after making deposits for six months.

1. What you need to pay attention to when applying for provident fund loans

1. Do not use provident funds before applying for a loan. If the borrower withdraws the provident fund balance before the loan is used to pay for the house, the provident fund balance on your provident fund account will be zero, and your provident fund loan limit will also be zero, which means that you will not be able to apply for a provident fund loan. .

2. Do not repay in advance within the first year of borrowing. According to the relevant provisions of provident fund loans, partial early repayment should be made after one year of loan repayment, and the amount you repay should exceed 6 months' repayment amount.

3. If you have difficulty repaying your loan, don’t forget to find a bank near you. When your repayment ability decreases during the loan period and you have difficulty repaying the loan, don't hold on to yourself. ICBC customers can apply to ICBC to extend the loan period. If it is found true after the bank's investigation and the loan principal and interest are not in arrears, ICBC will accept your application to extend the loan period.

4. Don’t forget to notify your obligation when renting a house after taking a loan. When you rent out a mortgaged property during the loan period, you must notify the tenant in writing of the fact that it is mortgaged.

5. Don’t forget to cancel the mortgage after the loan is paid off. After you have paid off all the principal and interest of the loan, you can go to the real estate trading center in the district or county where the property is located to cancel the mortgage with the bank's loan settlement certificate and other certificates of real estate rights of the mortgaged property.

6. Don’t lose the loan contract and IOU. When applying for a mortgage loan, the loan contract and IOU signed between the bank and you are important legal documents. Since the loan term can be up to 30 years, as a borrower, you should keep your contract and IOU properly.

2. Conditions for applying for a housing provident fund loan

1. A down payment of 20% of the total price of the purchase, construction, renovation or overhaul of a self-occupied house (the down payment ratio may vary in different places) vary), and the time since the purchase, construction, renovation, overhaul, or decoration of a self-occupied residence has not exceeded two years.

2. Have good credit, have relatively stable economic income, and have the ability to repay the principal and interest of the loan on time.

3. There are no debts that may affect loan repayment.

4. Have a legal and valid contract or agreement for the purchase, construction, renovation, overhaul, or decoration of self-occupied housing and other supporting documents required by the core management.

5. Assets recognized by the management core are mortgaged, pledged, or units or individuals with guarantee qualifications and sufficient solvency serve as guarantors.

6. If the borrower has a spouse, his or her spouse shall not apply for a housing provident fund loan separately during the marriage relationship.

7. Borrowers and their spouses who have obtained a housing provident fund loan are not allowed to apply for a housing provident fund loan again before the loan is repaid.

8. Other conditions specified by the management center.

Legal Basis

"Housing Provident Fund Management Regulations (2019 Revision)"

Article 26 Employees who pay housing provident funds shall not When renovating or overhauling a self-occupied house, you can apply for a housing provident fund loan from the Housing Provident Fund Management Center.

The Housing Provident Fund Management Center shall make a decision on whether to grant a loan or not within 15 days from the date of accepting the application, and notify the applicant; if the loan is granted, the entrusted bank shall handle the loan procedures.

The risks of housing provident fund loans are borne by the housing provident fund management center.