The differences between commercial loans and provident fund loans are as follows:

1, loan conditions: the commercial loan object is qualified through credit investigation; Provident fund loans must be paid by on-the-job employees and paid in full within a certain period of time.

2. Type of house: you can use provident fund loans to buy ordinary houses, but you can't use provident fund loans to buy commercial houses and villas; Commercial loans are not limited by the type of house.

3. The loan process is different from the examination and approval institution.

4. Different loan interest rates: the loan interest rate of provident fund is low, and the interest is low; The interest on commercial loans will be higher.

5. Different sources of funds.

Is provident fund loan cheaper than commercial loan?

Buying a house with provident fund is really cheap, but it should also be calculated according to your loan time and loan amount.

According to the highest loan standard for buying a house by provident fund, the interest rate of general loans should be 3.75%, which is about half of that of commercial loans.

If calculated according to the same loan term, the loan amount is 500,000 yuan, and the possible interest of commercial loans is about 300,000 yuan, then the interest of buying a house with provident fund under the same circumstances is about13 ~140,000 yuan. Therefore, the standard of 500,000 yuan can be as cheap as16 ~170,000 yuan.

Extended reading of provident fund housing purchase:

How to buy a house with provident fund?

1. Submit a written application for housing provident fund loan to the housing provident fund management core, truthfully fill in the housing provident fund loan application form and submit the materials.

2. The core of housing provident fund management conducts a preliminary examination of the applicant's materials, including the applicant's qualification, loan amount and term. After the preliminary examination is passed, the management core issues the Notice of Collateral Examination and Evaluation. After receiving the notice of mortgage review and evaluation, the applicant will take the notice to the designated evaluation institution to evaluate the value of the house to be purchased. If you can afford it, there is no need to evaluate it.

3. The applicant has obtained the "Assessment Report, Assessment Report, Housing Fund Management Core Guarantee Entrusted Loan Investigation Notice" issued by the assessment agency. When handling the guarantee procedures, the applicant shall handle the guarantee procedures in accordance with the guarantee method of his choice with the Notice of Investigation on Entrusted Loan with Core Guarantee of Housing Fund Management.

4. Sign a loan contract. After the loan contract is approved, the applicant can sign the loan contract, and the whole process is completed. It should be noted that, under normal circumstances, applying for housing provident fund loans must meet the requirement that individual urban workers and their units must pay housing provident fund continuously for one year.

Misunderstanding of saving money by mortgage: provident fund must save money than commercial loans.

How to save money to buy a house is an important task for many mortgage buyers. Financial management reminds the public to beware of the misunderstanding that "provident fund loans must save money than commercial loans". Provident fund loans are policy loans and belong to welfare loans, so they are lower than the expected annualized interest rate of commercial loans. Zhou Yan, a financial planner in Xiaoshan Sub-branch of Guangfa Bank, thinks that if the loan amount is not large, choosing provident fund loan may not save money. If you buy a second-hand house, most people can basically enjoy a 30% discount on the expected annualized interest rate. In this way, according to the expected annualized interest rate, taking the loan of 10 year as an example, the monthly payment of commercial loans per 10 million yuan is only more than that of provident fund loans, and the loan difference in other years is similar to that of 10 year.

In addition, commercial loans and provident fund loans are also different in terms of insurance premiums. For commercial loans, as long as they are not commercial properties or houses with long service life, banks generally do not require lenders to buy insurance. If it is a provident fund loan, it is generally necessary to buy insurance, and the advantage of using the loan amount × the service life of the loan × the provident fund loan is even smaller. Therefore, under normal circumstances, we will not recommend borrowers to choose provident fund loans for loans below 300,000 yuan. If you are buying a first-hand property, it is not necessarily cost-effective to use provident fund loans, because developers often give different discounts to buyers who borrow from commercial loans and provident fund loans.

What is more noteworthy is that due to the low profit of provident fund loans to banks, banks are generally not very active, and the Housing Authority has many procedures, which leads to a long time for banks to lend money. Therefore, many second-hand housing sellers are reluctant to accept provident fund loans. If it is a commercial loan, the seller can get the full amount within 10- 13 working days; For provident fund loans, it takes the seller 33-35 working days at the earliest, sometimes even 2 months. In practice, in order to reduce trouble, get money as soon as possible, and reduce the risk of failure in examination and approval, second-hand housing sellers often raise house prices for buyers who choose provident fund loans.

Therefore, while buying a house, avoiding misunderstanding and choosing a reasonable loan method are also means to save money.

Why are provident fund loans cheaper than commercial loans?

Because the housing accumulation fund system itself is a kind of housing security system, which is mandatory, mutual assistance and security. At the same time, it has the characteristics of earmarking, and the biggest advantage is that the loan interest rate is lower than that of Shang Dynasty. According to the latest benchmark interest rate of commercial bank loans is 5.65%, while the benchmark interest rate of provident fund loans is 3.75%, and the benchmark interest rate of provident fund loans is lower than that of commercial bank loans 1.90%.