The mortgage is not paid directly.

1. Basic process of provident fund withdrawal

Individuals who meet certain conditions can submit a withdrawal application to the provident fund management department. These conditions usually include purchasing, building, renovating, and overhauling self-occupied housing, repaying the principal and interest of housing loans, renting, etc. When applying, you need to submit relevant supporting materials, such as house purchase contract, loan contract, ID card, etc.

2. The relationship between provident fund withdrawal and mortgage repayment

After the provident fund is withdrawn, the funds will be directly deposited into the bank account designated by the applicant. The funds can be used to pay off the mortgage, but are not used directly to pay off the mortgage. In other words, the provident fund withdrawal does not directly deduct the loan principal or interest, but gives the funds to the applicant, who can decide how to use them.

3. The impact of provident fund withdrawal on mortgage repayment

Although provident fund withdrawal does not directly repay the mortgage, it can reduce the applicant's repayment pressure. Applicants can use the provident fund withdrawn to pay part of the principal or interest of the mortgage, thus reducing the monthly repayment. In addition, for some areas with more favorable provident fund loan policies, you can also enjoy certain interest rate discounts when withdrawing provident fund.

IV. Things to note

When withdrawing provident fund to repay a mortgage, applicants need to pay attention to the following points: First, understand the local provident fund withdrawal policies and conditions, and ensure that you meet the conditions before applying. Apply; secondly, plan the use of funds reasonably to ensure that the withdrawn provident fund can actually be used to reduce the burden of housing loans; finally, pay attention to your own provident fund account and repayment account in a timely manner to ensure that the use of funds is transparent and compliant.

In summary:

Withdrawing provident funds to repay a mortgage does not directly deduct the loan principal or interest, but gives the funds to the applicant for his or her own use. Applicants can use the provident fund withdrawn to pay part of the principal or interest of the mortgage, thereby reducing the repayment pressure. During the operation process, applicants need to understand local policies and conditions, reasonably plan the use of funds, and pay attention to account changes.

Legal basis:

"Housing Provident Fund Management Regulations"

Article 24 stipulates:

Employees have 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 self-occupied housing;

(2) Those who retire or retire;

(3) Completely losing the ability to work and terminating the labor relationship with the employer;

(4) Leaving the country to settle down;

(5) Repaying the house purchase loan Principal and interest;

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