First, the benefits of provident fund loans to buy a house:
1, low loan interest rate: if you buy a house with provident fund, the loan interest rate will be relatively low, and the loan interest rate of provident fund is generally about two percentage points lower than that of commercial loans;
2. Low mortgage down payment: the down payment ratio of provident fund to buy a house is also relatively low. Generally, if you buy a house with a provident fund loan, the down payment of the mortgage is only about 20%, while if you buy a house with a commercial loan, the down payment ratio is basically around 30%;
3, convenient repayment: if you buy a house with the provident fund, the repayment is quite convenient, and you can directly deduct it by paying the provident fund every month. Moreover, if you want to repay in advance, you will not charge liquidated damages, so commercial loans are not necessarily;
4. Tax deduction: If you use the provident fund to buy a house, the loan interest can be deducted from personal income tax. When employees pay personal income tax, they will first remove the social security accumulation fund and then use the rest as the tax base for tax deduction.
Two, provident fund loan conditions are:
1. The borrower has purchased affordable housing recognized by the lender;
2. The borrower is an individual who normally deposits the housing provident fund in the "Provident Fund Center";
3. Have a stable occupation and income, and have the ability to repay the loan principal and interest;
4. Have permanent residence in cities and towns or valid residence status;
5. Have a house purchase contract or relevant supporting documents.
Legal basis: Article 26 of the Regulations on the Management of Housing Provident Fund, employees who have paid housing provident fund can apply for housing provident fund loans from the housing provident fund management center when purchasing, building, renovating or overhauling their own houses. The housing provident fund management center shall make a decision on whether to grant loans within 15 days from the date of accepting the application, and notify the applicant; Where a loan is granted, the entrusted bank shall go through the loan formalities. The risk of housing provident fund loans shall be borne by the housing provident fund management center.