Generally speaking, the interest rate of provident fund loans is low. However, due to the high total price, commercial loans are often needed. This is the so-called portfolio loan. So, what are the advantages and disadvantages of portfolio loans?

Advantages of portfolio loan

Portfolio loans allow applicants to enjoy the low interest rate of housing provident fund loans. At the same time, for friends who can't meet the demand for housing because of the low loan amount obtained from the provident fund, they can obtain a larger loan amount through commercial loans. It can be seen that portfolio loan is a loan method that combines the advantages of provident fund loan and commercial loan.

But there is also one thing to note. At present, different provident fund centers have different regulations on provident fund management. Some provinces and cities stipulate in the management of provident fund purchase that if the second suite is purchased through provident fund loans, the interest rate may rise. For specific loan matters, you can call your local bank.

Disadvantages of portfolio loan

After the borrower applies for a portfolio loan, the commercial loan will be kept in the personal credit information system of the central bank. Suppose the buyer wants to buy another house, let's call it a second suite. If you use the provident fund loan to buy a house directly, as long as the borrower pays off the first home loan and applies for the provident fund loan to buy a house again, it will still lend according to the first home standard. In addition, the procedures of portfolio loans are very complicated, and borrowers need to wait for loans.

(The above answers were published on 20 15-06-04. The current purchase policy should be based on the actual situation. )

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