When buying a house for the first time, most buyers don’t know much about loans and repayment methods. If taking a loan, how long is appropriate? Is the shorter the better? What kind of bank loan to choose? How to borrow money to save money...

Loan types and differences

To buy a house with a loan, it is best to use a provident fund loan to buy a house. The provident fund policy has also been continuously relaxed in recent years. When buying a house, , can be used for renting a house. The loan can also be a mixture of provident fund and commercial loan. At present, the interest rate of provident fund loans for more than 5 years is 3.25%, and the interest rate of commercial loans is also 4.9%. There will be small discounts for commercial loan interest rates in different cities and regions.

1. Provident fund loan - low interest rate, but limited amount

Housing provident fund loan: For residents who have participated in paying housing provident fund, housing should be the first choice when buying a house with a loan Provident fund low-interest loans.

Housing provident fund loans are policy subsidies, and the loan interest rate is very low. It is not only lower than the commercial bank loan interest rate in the same period (only half of the commercial bank mortgage loan interest rate), but also lower than the commercial bank deposit interest rate in the same period. In other words, there is an interest rate difference between the housing provident fund mortgage interest rate and the bank deposit interest rate. At the same time, the fees for housing provident fund loans are halved when handling related procedures such as mortgage and insurance.

2. Commercial loan - high amount, but high loan interest rate

As long as the balance of the deposit in the lending bank accounts for no less than 20% of the funds required to purchase a house, and This is used as the down payment for purchasing a house, and if there is an asset recognized by the lending bank as a mortgage or pledge, or a unit or individual with sufficient repayment capacity serves as a guarantor to repay the principal and interest of the loan and bear joint liability, then you can apply for a bank mortgage loan.

3. Combination loan - moderate interest rate, large loan amount

When the housing provident fund loan cannot meet the needs of home purchase, the borrower can apply for a combination loan, that is, apply for a housing provident fund personal housing loan At the same time, apply for some commercial housing loans at designated banks. Portfolio loans have moderate interest rates and larger loan amounts, so they are often chosen by borrowers.

What are the repayment methods?

1. Equal principal repayment

Spread the principal into each month, and pay off the interest between the previous trading day and this repayment date.

Advantages: Lower overall interest expense; monthly payments will decrease over time.

Disadvantages:

The early repayment burden is heavy, especially the first repayment will be very stressful.

Applicable people: People with higher incomes, such as corporate executives, golden collar workers, overseas returnees, etc.

2. Equal principal and interest repayment

Add the total principal and interest of the mortgage loan, and then divide it evenly into each month of the repayment period.

Advantages: The borrower pays a fixed repayment amount to the bank every month; the interest proportion decreases month by month.

Disadvantages:

The overall interest expense is higher.

Applicable people: people with stable job income, employees of national enterprises and institutions, etc.

Loans save money Q&A

Q: If you take a loan, how long is the loan period and do you need to repay it in advance?

A: First of all, if you can borrow it, The money in the bank is quite cost-effective. Because China actually has long-term high inflation, low interest rates, and even long-term negative interest rates. The money you borrow from the bank is actually earned. Also because of the negative interest rate, equal principal and interest repayments are better than equal principal repayments. It is true that the interest paid back to the bank for equal principal and interest will be more in the end, but the pressure will be less at the beginning. Many people borrow debt from the beginning when buying a house, and many people are very stressed at the beginning.

Q: Are provident fund loans definitely cheaper than commercial loans?

A: Generally speaking, provident fund loans have lower interest rates than commercial loans. Most people think that provident fund loans save money than commercial loans.

In fact, commercial loans and provident fund loans are different in terms of insurance premiums. For commercial loans, as long as it is not a commercial property or a residential property that is too old, banks generally will not require the lender to purchase insurance. If it is a provident fund loan, it is generally unavoidable to buy insurance, and the insurance premium is generally the loan amount × loan term × 0.02%. If the two offset each other, the advantages of provident fund loans will be even smaller.

Therefore, if the loan amount is small, it may not be more economical to choose a provident fund loan.

After reading these points, I believe that savvy buyers are "well aware" of the loan issue, so quickly collect the guide and go buy a house! In addition, you must pay attention to your personal credit record. If there is a problem with your credit report, your loan will also be a problem.

(The above answer was published on 2016-11-08, please refer to the actual current home purchase policy)

For more real estate information, policy interpretation, expert interpretation, click to view

p>