If a commercial loan is used for the first mortgage of the house, the provident fund can be used for the second mortgage, but certain conditions must be met to use the provident fund loan. For a second real estate mortgage loan, the property must have clear property rights, the property has been evaluated and has residual value that can be used as a mortgage, and the property is no more than 20 years old. Other conditions stipulated by the bank must also be provided, such as the borrower's ID card, proof of residence, and marriage. Second mortgage loans can only be obtained for properties that meet certain conditions such as proof of personal income, primary mortgage loan contract, etc.
Benefits of provident fund loans
1. Provident fund loan repayment is more flexible and convenient
If a house buyer uses a provident fund loan to buy a house, the bank's repayment method will be more flexible than Commercial loans make it more convenient and flexible to purchase a house. The borrower can determine the monthly repayment amount by himself, but the premise is that the monthly repayment amount should not be lower than the minimum repayment amount stipulated by the bank. In this way, the borrower can You can formulate a reasonable and feasible repayment plan based on your financial strength, making it easier for borrowers to arrange their monthly financial expenses.
2. The provident fund loan funds can be doubled
The home buyer pays 5-20% of the personal deposit base, and the company where he works also pays the same proportion, and the funds in the account can be Double.
3. Provident fund loans are tax-free
According to the "Regulations on the Administration of Housing Provident Funds" and the "Guiding Opinions of the Ministry of Construction, the Ministry of Finance and the People's Bank of China on Several Specific Issues in the Management of Housing Provident Funds" ( Jianjinguan [2005] No. 5) and other regulations stipulate that the housing provident fund paid by an enterprise for its employees can be used as a deduction for corporate income tax. At the same time, the provident fund actually paid by enterprises and individuals is not included in the individual's current wages and salary income, and is exempt from personal income tax. That is to say, for employees, the pre-tax salary is deducted from the social security provident fund before it is used as the tax calculation base for tax deduction.
4. Provident fund loans can be withdrawn in advance
Employees who have paid housing provident funds purchase, build, renovate, or overhaul self-occupied housing with independent property rights, or suffer from serious illnesses that cause life difficulties , or enjoy urban minimum living security benefits, etc., you can withdraw the housing provident fund in advance with relevant legal and valid certification materials. It can be said that the use of provident funds goes far beyond loans to buy houses.