Modern people are pressured by high housing prices. In order to move into a house of their own as soon as possible, they will choose to take out a loan. Although they have to bear a mortgage, they still have a home that truly belongs to them. So how much do you know about home loans? What are the differences between the two more common commercial loans and provident fund loans? How to choose a lending bank? Many people must have doubts in this regard. Let's take a look at the difference between commercial loans and provident fund loans, and which bank is better for home purchase loans.
1. The difference between commercial loans and provident fund loans
1. Loan conditions are different
Lender:
For commercial loans The target is a natural person who has passed the credit assessment and has the ability to repay. Generally speaking, people with good credit and the ability to repay can apply for commercial loans. In addition to meeting the conditions required for commercial loans, provident fund loan recipients must also be employees who have paid provident fund and have paid in full for a certain period of time before they can be applied for.
Housing type:
To purchase ordinary residences, provident fund loans can be used. To purchase commercial houses and villas, provident fund loans cannot be used; commercial loans are not restricted by the type of house. .
2. Loan amounts are different
Provident fund loans have limit limits; commercial loans have no limit. Even if the loan amount calculated according to the provident fund loan formula is 2 million, due to the limit, the loan can only be 1.2 million. As for commercial loans, as long as you have good personal credit, strong repayment ability, and meet the loan conditions, you can get a mortgage of 3 million yuan.
3. The loan process and approval agencies are different
Provident fund loans must first be applied to the housing management center and undergo preliminary review by the housing management center. After passing the preliminary review, the housing management center will issue a certificate. Only then can you apply for a provident fund loan. Provident fund housing loans need to be approved by the provident fund management center. The decision-making power lies with the provident fund management center, and the bank is only the execution agency. After the borrower signs a house purchase contract, the commercial loan can be processed directly by providing relevant materials to the relevant bank agency or the developer that has signed a cooperation agreement with the bank. Commercial mortgage loans are mainly approved by banks, and the decision-making power rests with the bank. The process of commercial loans is simple, while the process of provident fund loans is complicated. It takes about 20 working days for commercial loans and about 40 working days for provident fund loans.
4. Different sources
Provident fund loans are a loan policy that can be enjoyed by employees who have paid housing provident funds. Currently, the main body of provident fund loan management is the housing provident fund management center in each city. The source is the housing provident fund paid and deposited by individual employees and their units. It can be simply understood as "take it from the people and use it for the people." Commercial loans are transactions in which real estate is used as collateral to obtain a one-time loan from a financial institution such as a bank. The main body of commercial housing loan management is commercial banks, and the source is the self-operation of each commercial bank, that is, the deposits of residents or units absorbed by the bank.
5. Different loan interest rates
Provident fund loans have the characteristics of low interest rates and low interest rates. The interest on commercial loans is the profit from business activities and belongs to the relevant people, while the interest on provident funds has a policy-specified purpose and can only be used for the construction of affordable housing.
2. Which bank is good for house purchase loans?
1. ICBC e-Lending
ICBC’s e-Lending provides convenience to many people who need loans. , as long as the borrower meets the corresponding application conditions, it can provide it with a loan of up to 800,000, with a term of up to five years.
2. China Construction Bank Quick Loan
China Construction Bank is one of the five major banks. It has advantages over some ordinary banks, but it will be more stringent in reviewing lender information. . As long as the loan officers meet certain conditions, CCB can provide them with an amount of up to five million.
3. Bank of Communications Haoxiangdai
Bank of Communications’ Haoxiangdai is also very reliable in the reputation of users. Although there is no fixed limit, it also provides other users with Provides more space.
3. House purchase loan process procedures
1. Sign a house purchase contract with the developer. At this time, you need to pay attention to check whether the developer has the "five certificates": "State-owned Land Use Certificate", "Construction Land Planning Permit", "Construction Project Planning Permit", "Construction Project Construction Permit", "Commercial Housing Sales (Pre-planning Permit)". Sales) License".
2. Pay the down payment and keep the down payment receipt.
3. Go to the bank to fill out the "Personal Housing Loan Application Form". Developers usually sign cooperation agreements with one or several banks, so it will be more convenient to apply for a mortgage loan agreement with a bank that has an agreement with the developer. Bring the originals and copies of the down payment receipt, "Commercial Housing Sales Contract", ID card, local household registration book (for non-local household registration, proof of temporary residence for more than one year), income certificate, etc. to the bank to fill out the "Personal Housing Loan Application Form". What needs special explanation here is that if you are married, you need credit reports, bank statements, etc. from both spouses.
4. The bank reviews the mortgage loan application. The bank's loan officers will review and approve the materials submitted by the applicant step by step. If they are deemed to meet the bank's loan conditions, they will notify the applicant to sign a "Personal Housing Mortgage Loan Contract" with a contract period of no more than 30 years.
5. Go to the Housing Authority to apply for the "Certificate of Other Rights to the House" to prove that there is a bank's mortgage on the property. Go to the notary department to apply for notarization of property rights mortgage. Go to an insurance company to apply for home insurance.
The above is about the difference between commercial loans and provident fund loans, and which bank is the best for home purchase loans. I hope it will be helpful to everyone!