First, the loan method
There are three main loan methods: commercial loans, provident fund loans, and portfolio loans. These three loan methods have their own advantages and disadvantages.
1, commercial loan
People who buy houses with commercial loans are more common, because the loan amount of commercial loans is very high.
Compared with provident fund loans, its threshold is relatively low, and the scope of loanable real estate is relatively wide. As long as the credit repayment ability is good and the loan policy is met, you can apply for a loan.
The process of commercial loans is relatively simple, the procedures are convenient and fast, and the speed of issuing loans is relatively fast.
The loan interest rate of commercial loans is relatively high, and the benchmark interest rate for loans over five years is 4.9%. At present, the loan interest rates of major banks have risen to a certain extent, resulting in high total interest.
2. Provident fund loans
The interest rate of provident fund loans is low, and the interest rate of loans for more than five years is 3.25%, resulting in less total interest, which can reduce the repayment pressure.
However, there are many restrictions on provident fund loans, and you need to pay a certain number of years according to local policies before you can apply for provident fund loans. The amount of provident fund loans is limited. Provident fund loans are more complicated than commercial loans in terms of loan processes and procedures, and the approval time is longer. The property nature of the loan is limited to ordinary housing. If there are outstanding provident fund loans before, you can't apply for provident fund loans again.
3. Portfolio loan
When the loan amount of provident fund is limited and the loan amount is not enough, you can use portfolio loans to increase the loan amount.
The interest rate of portfolio loans is higher than that of provident fund loans, but lower than that of commercial loans, and the interest rate is moderate.
The loan requirements of portfolio loans are high, and the loan process is complicated to meet the requirements of provident fund loans and commercial loans at the same time.
It is suggested that if the conditions of provident fund loans are met, and the amount of personal loans required after down payment is less than or equal to the amount of provident fund loans calculated by the provident fund center, it is best to choose the provident fund loan method.
If the amount of provident fund loans is not enough, it is recommended to choose commercial loans and then turn them into provident fund loans; If you are not afraid of trouble, you can choose a portfolio loan.
If you do not meet the conditions of provident fund loans or the amount of provident fund loans is too low, it is recommended to choose commercial loans.
Second, the repayment method
There are two repayment methods: equal principal and interest and average capital.
Matching principal and interest means paying the same amount of loans (including principal and interest) every month during the repayment period. Its advantage is that the monthly repayment amount of equal principal and interest is fixed, which is convenient for borrowers to remember. The disadvantage is that you need to pay more loan interest.
Average capital divides the total loan into equal parts during the repayment period, and repays the same amount of principal and the interest generated by the remaining loans in that month every month. In this way, because the monthly repayment amount is fixed and the interest is getting less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is getting less and less.
When buying a house with a loan, you must choose the loan method and repayment method that suits you according to your actual situation.