Differences in loan methods of commercial housing
Provident fund loan
Advantages: the interest of provident fund loans is lower than that of commercial loans in the same period, and the total interest can be saved a lot.
Disadvantages: According to local policies, employees can only apply for provident fund loans after paying a certain number of years of provident fund. The loan amount is related to the balance and deposit amount of the employee provident fund account, and the maximum loan amount 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 loans is limited to ordinary houses, and provident fund loans cannot be used for 40-year and 50-year property rights and villas. There are outstanding provident fund loans before, and you cannot apply for provident fund loans again.
commercial loan
Advantages: the loan amount is high. When buying a new house, the down payment shall not be less than the prescribed down payment ratio, and the rest of the house can be loaned. The process and steps are simple. There is no restriction on the nature of real estate property rights, and non-ordinary housing can also apply for commercial loans. Buyers with unlimited loan targets, good credit and stable income can apply for commercial loans.
Disadvantages: high loan interest rate and high total interest.
Consortium lending
Advantages: moderate interest, commercial loan interest, provident fund loan interest. Because it is a combination of provident fund loans and commercial loans, its loan amount is relatively high.
Disadvantages: It takes a long time to handle, because portfolio loans involve both provident fund and commercial loans, which need to be reviewed twice. Commercial loans can only be released after mortgage registration, which also makes the portfolio loan process longer than pure commercial loans and pure provident fund, which leads to many owners' low acceptance of this loan method.
Understand these contents before buying a house with a loan.
1. Some people think that the larger the loan amount, the better. Actually, it's not. Because you have to pay the mortgage and interest. The longer the loan term, the larger the loan amount, the more loan interest paid and the greater the repayment pressure.
2. If the mortgage buyer provides false materials to the bank, it may have a serious impact: it will affect the bank's audit, and it will be impossible to issue loans and realize the dream of living. What's more, it may be because individuals provide false materials, which leads to the inability to apply for loans, which leads developers to require buyers to bear the liability for breach of contract for overdue delivery of mortgage materials and pre-sale contracts of commercial housing, and pay a considerable amount of liquidated damages.
At present, there are two main repayment methods for buying a house with bank loans, namely, equal principal and interest and average principal. Although there is little interest in the average capital, the monthly supply is high and the pressure is relatively high. The total interest of equal principal and interest will be higher, but the monthly repayment pressure is small. You can choose the appropriate repayment method based on your own situation.