For example, a house costs 2 million yuan. According to the down payment ratio of 30%, you have to pay at least 600 thousand first. For most people, 600,000 yuan is a huge sum. If parents can help, the pressure may be less. If parents can't help, many people will buy a house in a decade or two.
Benefits of buying a house with provident fund
The loan interest rate of housing provident fund is much lower than that of commercial banks. At present, China's housing provident fund loan interest rate for more than five years is 3.25%, while the commercial loan interest rate for more than five years is 4.9% (in reality, many people can't get 4.9%, so they need to go up 10%, that is, 5.39%). Let's take the maximum of 600,000 as an example (the upper limit of individual housing provident fund loans is 400,000. Taking the 30-year period as an example, when housing provident fund loans and commercial loans (benchmark floating 10%) are used and the principal and interest are equal for 30 years, the interest difference between them is 61-34 = 270,000 yuan, a difference of nearly half. So if you have the opportunity to use the housing provident fund, you must use the provident fund loan.
Interest on provident fund deposits
If we have not used provident fund loans, then more and more funds will be accumulated in the account, but the interest on this part of the funds in the provident fund account is very low. According to the accounting method of housing provident fund, the housing provident fund paid by employees bears interest on June 30th every year. During the interest-bearing year (from July 1 day of last year to June 30 this year), the housing provident fund paid shall bear interest according to the deposit interest rate stipulated by the People's Bank of China. The principal and interest of the housing provident fund carried forward from last year (that is, the account principal and interest before July of last year 1) shall be calculated according to the three-month lump-sum interest rate of the People's Bank of China. Therefore, it is a great loss to put funds in the housing provident fund account for a long time.
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Have the ability to buy a house, then use the housing provident fund to buy a house; If you can't afford to buy a house temporarily, you can use the funds in the housing provident fund to rent a house or decorate an old house. In short, try not to put money in the provident fund account, otherwise you will lose your own capital cost.
Housing provident fund can be used to pay for house purchase, mortgage repayment, building and renting. Under special circumstances, such as family members suffering from serious illness or major surgery, employees and their spouses can also apply for withdrawal of housing provident fund, so they also need to pay the provident fund on time.