1. Provident fund loans are not flexible enough for second-hand houses.
Provident fund loans have great restrictions on the use of second-hand houses, such as the purchase period, the nature of the house and the area of the house. If the second-hand house you want to buy does not meet these requirements, then you may not be able to use the provident fund loan to buy it. Second-hand houses may need to be repaired or renovated, and the taxes and fees to be paid will be higher. Provident funds can basically only be used to buy new houses, and it is not recommended to use provident funds to buy second-hand houses.
2. The value of second-hand houses is unstable.
Because the value of housing depends on market supply and demand, location and other factors, the value of second-hand housing fluctuates relatively, and there may be greater risks. The interest rate of provident fund loans is relatively low. Buying a second-hand house with a provident fund loan may restrict you from buying a new house with a provident fund. The cost of buying a second-hand house may be higher than buying a new house.
Conditions for using provident fund loans to purchase second-hand houses:
Second-hand houses with provident fund loans must not be small property houses, but only commercial houses, affordable housing and price-limited commercial houses. Second-hand housing provident fund loans can pay a certain down payment, generally 30% of the total housing price.
The borrower's second-hand housing provident fund loan age and loan application period can not exceed 65 years. If the second-hand house with provident fund loan is over 15 years, the age of the house plus the loan period cannot exceed 30 years.
The owner wants to sell his second-hand house, and he definitely wants to collect all the money from the house in a short time. Since most buyers still need to apply for loans, the owners can only collect the final payment of the house when the buyers lend money. However, if the buyer applies for a mortgage with the provident fund, then the lending speed is very slow, generally more than half a year, and the seller is not willing.