If a customer wants to repay the mortgage early after applying for a mortgage for twenty years, it is recommended that the customer choose to repay the mortgage early within the first third of the repayment period (that is, the first seven years). The money will be more cost-effective.

Because like the equal principal and interest repayment method, although the monthly repayment amount is the same throughout the repayment period, the proportion of principal and interest in the monthly payment is constantly changing. As the customer gradually repays, the interest proportion will become smaller and smaller, and the principal proportion will gradually increase (basically starting from the sixth year, the interest proportion of the monthly mortgage payment for twenty years will be based on the equal principal and interest repayment method. The ratio starts to be less than the principal).

Conditions for housing provident fund loans

1: Conditions for applying for provident fund loans to buy a house

According to the Housing Provident Fund Management Regulations, the conditions for citizens to apply for provident fund loans are as follows:

First of all, the house purchased by the applicant must be a self-occupied house, have a permanent residence in this city or a valid ID card, and have paid and deposited the housing provident fund normally for 6 consecutive months before applying for a loan.

Secondly, the applicant must have a stable economic income and no bad credit record. A down payment of 30 RMB is required for the first home. A down payment of 20 RMB is required for a house of 90 square meters or less. The applicant must also have the ability to repay the loan as required. There is also a certificate of housing registration information issued by the housing security bureau of the place where the provident fund is deposited and where the house is purchased.

Finally, a guarantor recognized by the client provides a periodic guarantee before the house mortgage takes effect, and uses the purchased house as a mortgage. Of course, the only home buyers who can apply for housing provident fund loans are parents and direct adult children.

Two: If you need to pay off the first home loan, you can apply for a provident fund loan

Different from applying for a commercial loan for a second home loan, applying for a provident fund loan to purchase a second home must meet certain conditions. Otherwise it will not be accepted.

Citizens who apply for provident fund loans to buy a second house must repay the provident fund loan for the first house, and the down payment ratio for the loan to purchase the second house must not be less than 60%. In addition, according to regulatory policies, loan interest rates will also increase by 10%.

Housing Provident Fund Loan Process

Step 1: Submit an application: The lender shall provide the required information for the loan to the Provincial Provident Fund Management Center as required.

Step 2: The bank conducts credit investigation and loan approval. No matter how you choose to borrow money to buy a house, this step cannot be avoided and will take some time.

Step 3: Sign the loan contract: The lender brings relevant information to the bank to sign the loan contract.

Step 4: Go through the house property insurance and mortgage registration procedures: Borrowing must go through the insurance and mortgage registration procedures.

Step 5: Loan transfer: After confirming that the mortgage registration has been completed and the loan contract has come into effect, the loan undertaking bank will transfer the loan to the bank designated by the borrower and the house seller on the date agreed in the contract. account and send the loan receipt to the borrower.

Step 6: Loan recovery: The lender will repay the loan as stipulated in the loan contract starting from the month after the loan is disbursed.

Step 7: Loan settlement and cancellation: After the lender repays the principal and interest of the loan, the bank will issue a loan settlement certificate and be responsible for handling the mortgage registration and cancellation procedures.