Housing accumulation fund is a kind of housing security system and a form of monetization of housing distribution. Most companies will pay the housing provident fund for their employees, but the contribution ratio may be different, more or less. Everyone basically knows that provident fund loans can be used, and many people are willing to use provident fund loans because they have many advantages. In fact, provident fund loans also have some shortcomings, you will be clear after reading this article.

1. What are the advantages of provident fund loans?

1, the loan interest rate is lower than that of commercial loans.

The benchmark interest rate of provident fund loans is much lower than that of commercial loans. At present, it is 2.75% for less than five years and 3.25% for more than five years; The benchmark interest rate for commercial loans over five years is 4.90%. When buying a house, the use of housing provident fund loans can save a lot of housing costs for buyers.

2. Low down payment

The down payment ratio of provident fund loans to buy a house is lower than that of commercial loans. For example, if you buy the first suite in Shanghai, the down payment is 20% below 90 square meters and 30% above 90 square meters; Buy the first suite with a commercial loan, with a down payment of 35%. The down payment ratio of the first home provident fund loan in Beijing is 20%, and the down payment ratio of the first home commercial loan is 35%.

3. The monthly repayment amount is small.

It should be reminded that the loan life of commercial loans in different regions is different. The loan period of commercial loans in all regions of the country can only be 30 years, and most older second-hand houses can only be loaned to 10 years, with high loan interest rate and high monthly supply pressure. Compared with commercial loans, provident fund loans not only have short repayment time, but also have much less repayment interest.

Second, what are the shortcomings of provident fund loans?

1, the loan is limited.

Although the interest rate of provident fund loans is much lower than that of commercial loans, why do some people prefer to give up provident fund loans and apply for commercial loans? The main reason is that the maximum amount of provident fund loans is limited. Although the maximum amount applied by individuals and couples is different, in first-and second-tier cities, even if the maximum amount of provident fund loans is reached, it is not enough to buy a house.

2. The deposit time is limited.

If buyers want to buy a house with provident fund loans, they must first pay a certain number of years of housing provident fund. Different cities pay provident fund at different times. Some cities require borrowers to pay the provident fund in full for more than half a year (inclusive), and the provident fund account is in a normal state of payment. Some cities also require continuous payment of 1 year or more before lending.

3. The borrowing period is too long.

In addition, the process of provident fund loan is complicated, which leads to a long loan period. If buyers are anxious to buy a house, then provident fund loans are not realistic, and many buyers finally choose commercial loans.

4. The account balance affects the loan amount.

The balance of the provident fund account will affect the loan amount. If the account balance is too small, the loan amount you can apply for will be lower, so it is best not to touch the balance of the provident fund account before applying for a provident fund loan. However, not all urban provident fund loan quotas are affected by account balances.