Generally, provident fund loans cannot be used to pay the down payment for house purchase, but must be paid by means of savings deposits, credit loans or mortgage of old houses. For the first time to use the provident fund loan to purchase a house, the down payment ratio shall not be less than 20% to 30% of the total house price; If a commercial bank loan is used, the minimum down payment ratio shall not be less than 30% of the total house price; When buying a second suite, the down payment ratio shall not be less than 60% of the total house price. The use principle of the provident fund is "consumption first and then withdrawal", that is, after the purchase behavior occurs, the provident fund can be withdrawn to alleviate the pressure of down payment and monthly payment. The provident fund system is essentially a housing security system, which aims to help employees solve the housing problem, rather than paying the down payment directly.

Provisions on the use of provident fund:

1. restrictions on use: the provident fund is mainly used for housing consumption, including the purchase, construction, renovation or overhaul of housing;

2. Extraction conditions: certain conditions must be met when extracting the provident fund, such as house purchase contract and loan contract;

3. Payment method: the provident fund can be used to repay the principal and interest of the housing loan, but it cannot be directly used to pay the down payment of the house;

4. Extraction process: the extraction of provident fund needs to be handled through the housing provident fund management center, and relevant certification materials should be submitted;

5. Withdrawal limit: the withdrawal limit of the provident fund is limited by the account balance and related policies.

To sum up, the balance of the provident fund can not be directly used to pay the down payment for house purchase, but can be paid by means of savings deposit, credit loan or mortgage of old houses. There are certain requirements for the down payment ratio of provident fund loans to purchase houses, and the principle of using provident fund is "consume first and then withdraw". The purpose of the provident fund system is to help employees solve the housing problem, rather than paying the down payment directly.

Legal basis:

Regulations on the administration of housing provident fund

Article 24

In any of the following circumstances, employees may withdraw the storage balance in the employee housing provident fund account:

(a) the purchase, construction, renovation and overhaul of owner-occupied housing;

(2) retirement;

(three) completely lose the ability to work, and terminate the labor relationship with the unit;

(4) Having left the country to settle down;

(5) Repaying the principal and interest of the house purchase loan;

(six) the rent exceeds the prescribed proportion of family wage income.

In accordance with the provisions of items (2), (3) and (4) of the preceding paragraph, the employee housing provident fund account shall be cancelled at the same time. If an employee dies or is declared dead, the employee's heirs and legatees may withdraw the storage balance in the employee's housing provident fund account; If there is no heir or legatee, the storage balance in the employee housing provident fund account shall be included in the value-added income of the housing provident fund.