The purpose of housing provident fund:
1, loan to buy a house. If you buy affordable housing or commercial housing, you can use provident fund loans, which will have less interest than ordinary commercial loans. Commercial loans can draw provident fund for down payment or repayment of principal and interest. Generally, you can use the provident fund loan to buy a house after paying for more than 6 months;
2. Rent a house. The provident fund can pay the rent for renting a house;
3. Parents buy houses for their children or treat major diseases. If you use a commercial loan to buy your own house, you can withdraw your parents' provident fund after paying the down payment, use a personal housing provident fund loan to buy your own house, and you can withdraw your parents' provident fund after paying the down payment. Or family members withdraw provident fund to pay hospitalization expenses;
4. Provident fund can be withdrawn at one time. You can withdraw it at one time before closing the account. Such as retirement, retirement, and going abroad to settle down.
The advantages of using provident fund loans are:
1. The housing provident fund paid by employees and the provident fund paid by the unit belong to employees;
2. Rolling interest;
3. Enjoy tax exemption;
4. The interest on buying a house by loan has been reduced. For example, if the loan is 6,543,800 yuan+200,000 yuan with a term of 30 years, all interest can be saved by repayment in equal amount.
You can repay the loan in advance.
Legal basis: Article 4 of the Regulations of People's Republic of China (PRC) Municipality on the Administration of Housing Provident Fund.
The management of housing provident fund shall follow the principles of decision-making of housing provident fund management committee, operation of housing provident fund management center, storage of special bank accounts and financial supervision.
Article 5
The housing accumulation fund shall be used for the purchase, construction, renovation and overhaul of owner-occupied housing by employees, and no unit or individual may use it for other purposes.