The benefits of buying a house with provident funds are as follows:

1. Low loan interest rates.

Compared with commercial bank loans, provident fund loans have relatively lower interest rates. According to current regulations, if the provident fund loan interest rate is less than five years (including five years), the annual interest rate is 2.75; for more than five years, the annual interest rate is 3.25.

2. The loan period is long.

The term of a provident fund loan is relatively long, up to 30 years, and the monthly repayment pressure is low. Commercial bank loans have strict restrictions on second-hand housing loans. Those with older properties can only get loans for 20 years.

3. The upper age limit for applicants is high.

Generally speaking, commercial bank loans require that the borrower’s age plus the loan period must be less than 65 years old, while the provident fund loan can be up to 70 years old.

4. Flexible repayment methods.

The repayment method of provident fund loans is relatively flexible. As long as the monthly repayment amount is not less than the "minimum repayment amount", you can freely arrange the repayment. The amount exceeding the "minimum repayment amount" will be deemed as is the amount of early repayment. Commercial bank loans have strict requirements for the number of early partial repayments. For example, a CCB mortgage loan can only be repaid in advance once a year. There is no limit on the number of early repayments of housing provident fund loans for most housing provident funds. The amount of each repayment can be an integral multiple of 10,000 yuan.

5. The account balance can be used to offset the loan.

The balance in the housing provident account can not only be used to apply for a loan, but can also be used to offset the loan and repay the loan. You can choose to offset the account balance in one go and then repay according to the remaining principal and repayment. A recalculated repayment plan can reduce interest payments and lower monthly payments. You can also choose to offset the loan on a monthly basis, and the provident fund account will be automatically deducted on the monthly repayment date.

6. The down payment ratio is low.

The down payment for buying a house usually makes home buyers feel stressed. Reducing the down payment for buying a house will greatly ease the financial pressure of home buyers. The down payment ratio of provident fund loans can be as low as 20, while commercial bank loans are basically around 30. In comparison, provident fund loans can significantly reduce down payment pressure.

7. Income tax can be deducted.

According to regulations, housing provident funds paid by enterprises and individuals are not included in the wages and salaries of the current period, and are exempt from personal income tax. The deposited portion can be treated as a personal income tax item and can be deducted before tax.

8. There is no penalty for early repayment of the loan.

After one year of repayment of the provident fund loan, the user can choose to settle the provident fund loan in full at once or to repay part of it in advance. No penalty will be charged for early repayment. However, commercial loans are different. The loan will charge a certain percentage of fees.

Legal basis:

"Housing Provident Fund Management Regulations"

Article 24

If an employee has one of the following circumstances, The balance in the employee housing provident fund account can be withdrawn:

(1) Those who purchase, build, renovate or overhaul their own homes;

(2) Those who retire or retire;

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(3) Completely lose the ability to work and terminate the labor relationship with the employer;

(4) Leave the country to settle;

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

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