The provident fund has no interest on mortgage every year. The provident fund loan itself can choose annual mortgage or monthly mortgage. If the balance of the provident fund itself is relatively large, it is most cost-effective to choose an annual mortgage. Then, what is the maximum deduction from the provident fund every year? Come and have a look at the introduction I brought!

Do you want to calculate the interest of the annual provident fund?

There is no need to calculate interest on the annual withdrawal of provident fund. Annual withdrawal of provident fund refers to one-time withdrawal of the balance from the provident fund account to offset the loan principal, and interest is not required when returning this part of the principal. This part of the loan itself is prepayment. If the principal is repaid directly, the interest of the subsequent loan will be less.

What is the maximum deduction of the annual provident fund?

There is no specific limit on the annual repayment amount of the provident fund, as long as it does not exceed the remaining unpaid principal, that is to say, as long as the balance of the provident fund is sufficient, the mortgage can be paid off directly. The annual loan itself is equivalent to prepayment. If the principal is not fully paid off, the bank will recalculate the monthly repayment amount.

Two repayment methods of provident fund loans

1, annual repayment, that is, one-time repayment.

It means to withdraw the balance of the housing provident fund account from the trustee once a year, repay the loan principal in one lump sum, and recalculate the monthly repayment amount according to the remaining loan principal and repayment period after repayment. After one-time repayment, the monthly repayment needs to use the customer's own funds, not the money in the provident fund account.

2. Monthly repayment, that is, monthly repayment method.

Refers to the monthly direct withdrawal from the customer's provident fund account to repay the loan principal and interest of the month. When the amount of the withdrawn provident fund is insufficient, the client shall make up the repayment amount in time. This way can not only offset the principal and interest of provident fund loans, but also offset the principal and interest of commercial loans.

Note: If the customer chooses the one-time repayment method, he cannot choose the monthly repayment method, but can only choose one of them. But if you want to change the repayment method in the future, customers only need to go to their own loan bank to change the repayment method.