1, interest rate advantage. The interest rate of provident fund loans is usually lower than that of commercial loans, which means that buyers can pay less interest, thus reducing the cost of buying a house.
2. The repayment method is flexible. The repayment method of provident fund loans is more flexible, allowing borrowers to make reasonable repayment plans according to their own economic conditions, and there is no need to pay liquidated damages when repaying in advance.
3. The loan term is long. The term of provident fund loans is usually longer than that of commercial loans, which means that buyers can repay for a longer period of time, reducing the monthly repayment pressure.
Advantages of the Provident Fund:
1. supportability: it provides a guarantee for employees to solve housing problems quickly and well.
2. Mutual assistance: through the establishment of the housing provident fund system, employees with housing help those without housing, reflecting the mutual assistance of employees' housing provident fund.
3. Long-term: Every urban employee must pay personal housing provident fund from the date of joining the work to retirement or termination of labor relations.
4. Exemption from interest tax: The housing provident fund paid in accordance with regulations can get tax incentives.
5. Low loan interest rate: provident fund loans can save tens of thousands of yuan in interest than commercial loans.
To sum up, provident fund loans have fewer restrictions on purchased houses, and banks have fewer restrictions on the age of second-hand houses, which is convenient for applying for loans. Therefore, if conditions permit, it is a worthwhile choice to buy a house with a provident fund loan.
Legal basis:
Regulations of People's Republic of China (PRC) Municipality on the Implementation of Enterprise Income Tax Law
Article 35
The basic social insurance premiums and housing accumulation funds paid by enterprises for employees in accordance with the scope and standards stipulated by the relevant competent departments of the State Council or the provincial people's government are allowed to be deducted. Supplementary endowment insurance premiums and supplementary medical insurance premiums paid by enterprises for investors or employees are allowed to be deducted within the scope and standards stipulated by the competent departments of finance and taxation of the State Council.