1, employees do not have to bear the loan risk, because the housing provident fund loan risk is borne by the housing provident fund management center;

2. The interest to be paid is lower than that of commercial loans;

3. There is no penalty for prepayment.

The difference between provident fund buying a house and commercial loan buying a house.

1, the types of houses that can be purchased are different. Housing provident fund loans can only be used when buying houses with 70-year property rights, and other types of houses such as commercial and residential houses cannot apply for provident fund loans; The types of houses faced by commercial loans are relatively loose. In addition to residential, commercial and residential dual-use housing can also apply.

2. The loan amount is different from the interest rate. According to the regulations, the interest rate of housing provident fund loans is fixed at one year. If the interest rate is adjusted during the loan period, and the loan period is only one year, the interest rate will not be adjusted. If the loan term is more than one year, the new interest rate will be implemented from the following year 1 month 1 day, and the amount will depend on local conditions. The interest rate of commercial loans depends on local banks. Generally, there is no upper limit, but it depends on the total household income. Although the interest rate of provident fund loans is fixed for one year, the interest rate is still much lower than that of commercial loans.

3. The loan term is different. Provident fund loans require a total loan period of no more than 30 years (slightly different from place to place), while commercial loans are more flexible and have a longer repayment period.

4. The approval time and organization are different. Commercial loans take about 20 working days, and provident fund loans take about 40 working days. Commercial loans are faster than provident fund loans. Commercial mortgage is mainly approved by banks, which make decisions; The mortgage loan of provident fund needs to be approved by the core of provident fund management, and the decision-making power lies in the core of provident fund management, and the bank is only the executing agency.

5. The requirements are different. The requirements of commercial loans are good personal credit, no bad credit record and repayment ability. The requirements for provident fund loans are relatively strict. In addition to good personal credit, it is also required that the personal provident fund account must be continuously paid in full and normally within 6- 12 months (slightly different from place to place) from the date of loan.

6. Different sources of loans. Commercial loans come from public funds raised by banks and other lending institutions, and provident fund housing loans come from housing provident fund paid by individual employees and their units.

7. The procedures are different. When buying a house, you can apply for provident fund loans and commercial loans, but provident fund loans need to be reviewed by the provident fund management center to determine whether the amount meets the loan conditions. Commercial loans are only audited by lending banks. The procedure of buying a house with provident fund loans will be more troublesome than buying a house with commercial loans, which is why many commercial houses do not accept provident fund loans to buy a house.