If you buy an auction house, the risk of the auction house is still relatively large. People who borrow money to buy a house can separate their funds and reduce the risk of buying a house. For example, they can rent the house and then use it on other projects, so that the use of funds is more flexible. Even home buyers have reduced the pressure to raise large sums of money at one time.
Because mortgage loans are loans from banks to buy a house, you can buy your own house without spending a lot of money right away, so the first advantage of buying a house with loans is that you can buy a house with less money.
However, the procedures of buying a house by loan are more complicated than buying a house in full, provident fund loans are more complicated than commercial loans, and portfolio loans are more complicated than provident fund loans. If the bank loan amount is tight, the approval will be stricter, the approval process will slow down, and the process and timeliness will be further lengthened.
Compared with borrowing money to buy a house, it is much easier to buy a house in full. For example, there are a lot of proof materials to deal with loan demand, some of which involve the need to take out pawn or pledge, and some loans are more strictly audited, which have certain requirements for the borrower's work and income. It takes a long time to handle the loan and the process is cumbersome. One-time payment saves these troubles.
Moreover, developers will have many preferential policies for customers who pay the house price in one lump sum, such as a 95% discount on the house price, which greatly reduces the cost of buying a house.
Although buying a house should be chosen according to your own situation, the economic situation of different buyers is different.