1. What is the difference between a 700,000 commercial loan and a 30-year provident fund?

Taking a loan of RMB 700,000 as an example, the annual interest rate of a commercial loan is 5.88%, the interest rate of a provident fund loan is 3.25%, and the interest rate difference is 2.63%; the monthly payment of equal principal and interest for a loan of RMB 700,000 for 30 years: a commercial loan of RMB 4,143, with a balance of RMB 1,096.56 The total repayment amount is more than 1.491 million yuan for commercial loans and more than 1.096 million provident fund loans, with a difference of 395,000 yuan; the commercial loan interest is more than 791,000 yuan, and the provident fund interest is more than 396,000 yuan. Therefore, compared with the commercial loan interest rate of 5.88% for provident fund loans, the same 30-year provident fund loan can save nearly 400,000 in loan interest. Some friends bought a house before the interest rate was at a high of over 6%. They can save even more interest after switching to provident fund.

2. The difference between provident fund loans and commercial loans

There are two payment methods for buying a house, loan to buy a house and full payment to buy a house. Loans to buy a house are divided into provident fund loans, commercial loans and combination loans. Many people only know that provident fund loans have low interest rates, but they do not understand the specific differences between provident fund loans and commercial loans. Today, we will explain the difference between the two in detail.

1. Loan conditions vary

Lender:

The target of a commercial loan 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 a maximum amount limit; commercial loans have no limit. Taking Beijing as an example, the maximum amount of a first-time home loan is 1.2 million yuan. As shown in the picture below, a loan of up to 3 million is required.

Even if the loan amount calculated according to the provident fund loan formula is 2 million, due to the limit, the maximum 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 at the Housing Fund Management Center and undergo preliminary review by the Housing Fund Management Center. After passing the preliminary review, the Housing Fund Management Center Provident fund loans can be applied for only after a certificate is issued. 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, a 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 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 investors, while the interest on provident funds has a policy-specified purpose and can only be used for the construction of affordable housing.

5. Different sources of funds

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 of funds is the housing provident fund paid 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 of funds is the self-operated funds of each commercial bank, that is, the deposits of residents or units absorbed by the bank.

Understanding the difference between provident fund loans and commercial loans, when buying a house, you can choose the loan method that best suits you based on your actual situation.

3. The difference between provident fund loans and commercial loans

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

1. The loan interest rates are different.

For applicants, the most important thing is the loan interest rate. Provident fund loan interest rates are lower than commercial loan interest rates. Provident fund loan interest rates are 4.0% for less than five years and 4.5% for more than five years. The commercial loan interest rate for loans over five years is 6.55, and the loan interest rates executed by different banks fluctuate above this benchmark interest rate.

2. The entities of lending institutions are different. The housing provident fund loan management entity is the housing provident fund management center, while the commercial housing loan management entity is commercial banks.

3. Loans come from different sources of funds. The source of funds for commercial housing loans is the self-operated funds of commercial banks (that is, the deposits absorbed by residents or units), while the source of funds for housing provident fund loans is the housing provident fund paid by individual employees and their units.

Legal basis:

Article 26 of the "Housing Provident Fund Management Regulations"

Employees who have paid housing provident funds shall not When you live in a self-occupied house, you can apply for a housing provident fund loan from the Housing Provident Fund Management Center.

The Housing Provident Fund Management Center shall make a decision on whether to grant a loan or not within 15 days from the date of accepting the application, and notify the applicant; if the loan is granted, the entrusted bank shall handle the loan procedures.

The risks of housing provident fund loans are borne by the housing provident fund management center.

IV. The difference between provident fund loans and commercial loans

1. What are the differences between provident fund loans and commercial loans

1. The difference between provident fund loans and commercial loans The details are as follows:

(1) Loan objects are different. Provident fund loans refer to loans enjoyed by employees who have paid housing provident funds. Commercial loans, also known as personal housing loans, are commercial banks and housing savings banks approved by the People's Bank of China to provide loans for urban residents to purchase ordinary houses for self-use;

(2) Loan interest rates are different. The benchmark interest rate for commercial loans over 5 years is 4.9%, specifically based on the mortgage interest rate of the lending bank; the interest rate for housing provident fund loans over 5 years is 3.25%.

(3) The scope of application is different. Commercial loans can be used for residential housing and non-residential housing, but provident fund loans can only be used for individuals to purchase residential housing.

2. Legal basis: Article 2 of the "Regulations on the Administration of Housing Provident Funds"

These regulations apply to the deposit, withdrawal, and withdrawal of housing provident funds within the territory of the People's Republic of China and the People's Republic of China. Use, management and supervision.

The term “housing provident fund” as mentioned in these Regulations refers to state agencies, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, institutions, private non-enterprise units, and social groups (hereinafter (collectively referred to as the unit) and the long-term housing savings deposited by its employees.

Article 6

The interest rates for deposits and loans of housing provident funds shall be proposed by the People's Bank of China and shall be submitted to the State Council for approval after soliciting the opinions of the construction administrative department of the State Council.

2. What are the conditions that need to be met to apply for a provident fund loan

1. Have a permanent residence in this city or other valid residence status, and have full capacity for civil conduct;

2. The signing of a legal and valid house purchase contract or agreement, and the first installment of the house purchase payment shall be paid in accordance with the prescribed proportion;

3. The ability to repay the principal and interest of the loan on time while having a stable career and income;

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4. Only after paying the housing provident fund in full for 6 months can you apply for a loan;

5. For individuals with good credit;

6. No Other debts with large amounts that can affect the repayment ability of the loan;

7. The monthly expenditure shall not exceed 50% of the monthly household income to repay various housing loans including the personal housing provident fund loan to be applied for , the monthly household income after deducting monthly loan repayment expenses shall not be lower than the city’s minimum living standard;

8. Other conditions that comply with national laws and regulations.