Provident fund loans also require a mortgage of a house. Housing loans use houses as collateral. Like commercial loans, the mortgage of provident fund loans is also a house. After the real estate certificate is processed, other warrants will be mortgaged in the bank, and in the mortgage loan Before the settlement is completed, the bank will impose restrictions on the use of this house for transfer, mortgage and other services. Only when the mortgage loan is settled and the mortgage release procedures are completed, the owner can freely dispose of the property.

What should be paid attention to when applying for provident fund loans

1. Do not use provident funds before applying for a loan

If you plan to buy a house, you still need to use provident fund loans. The family should not withdraw provident funds. If the borrower withdraws the provident fund balance before the loan is used to pay for the house, the provident fund balance on your provident fund account will be zero, and your provident fund loan limit will also be zero, which means that you will not be able to apply for a provident fund loan. .

2. Prepare loan information

Loan is a complicated process, and home buyers need to provide the bank with a lot of information. Provident fund loan procedures are complicated. In order to save loan approval time and ensure smooth loan approval, borrowers should prepare loan information as required before borrowing. If you are not sure what information you need to prepare, you can go to the local provident fund management for consultation.

3. Don’t lose the loan contract and IOU

When applying for a loan, you need to sign many documents, especially the loan contract and IOU, which must be kept. When applying for a mortgage loan, the loan contract and IOU signed between the bank and you are important legal documents. Since the loan term can be up to 30 years, as a borrower, you should keep your contract and IOU properly.

4. If the provident fund loan has not been paid off, the provident fund cannot be used to purchase a house again. Provident fund loan

There are clear regulations that no further application for a loan is allowed when the loan has not been repaid. Whether it is a provident fund loan before or after marriage, if one of the spouses has applied for a provident fund loan, there will be a corresponding record on the provident fund center system. Before the last loan is repaid, the couple can no longer use the provident fund loan to purchase Second suite. Only when the provident fund loan for the first house has been paid off, the couple can use the provident fund loan to buy a house again.

5. Do not repay early within the first year of borrowing

Sometimes you take a loan to buy a house to alleviate the problem of capital turnover. Provident fund loans also have regulations for early repayment. Generally speaking, if you take the form of a provident fund loan, you should apply for early repayment after one year of repayment, and the repayment amount should exceed the six-month repayment amount. The borrower should deposit the full amount of the monthly repayment into the repayment account before the monthly repayment date as stipulated in the loan contract. Be careful not to overdue the loan.