First, be sure to read the loan contract clearly.
Individuals must sign loan contracts to get loans from banks. Due to the different loan rules of different banks, different banks have different requirements for early repayment. If some banks stipulate in the contract that the loan can be lent for at least six months or more than one year before they can apply for prepayment, then even if there is no agreement, the bank will request to accept the loan prepayment business after reaching the corresponding time limit. Then, it depends on whether there is a certain percentage of liquidated damages or handling fees for early repayment in the loan contract, which also depends on different lending banks. Some banks generally don't charge liquidated damages for early repayment, such as individual housing loans to establish banks, while some banks will stipulate that borrowers who repay loans in advance must pay the loan banks a penalty interest ranging from several months. Specifically, the contract agreement between the borrower and the lender shall prevail. For example, the prepayment fee of most individual housing loans in China Bank 1.
The second is to compare the types of self-owned loans.
As for housing provident fund loans, the loan interest rate is relatively low, 2.75% for less than five years and 3.25% for more than five years. Its capital cost is relatively low. If the existing funds are used for large-scale financial management of banks, the rate of return can reach more than 4%, and there is a certain difference profit between them. Moreover, the housing accumulation fund paid by individuals every month can only be used for personal purchase of housing and other aspects of extraction. Every year, you can apply for using the paid housing provident fund in advance for lending, or apply for monthly repayment. They use the relatively unusable provident fund as effectively as possible, increase the reasons for using the provident fund, and also help to reduce the monthly payment burden of borrowers. If you make a one-time advance loan, you will not be able to apply for withdrawal of the provident fund except for the application conditions of the provident fund rules such as buying a house.
Third, fully plan the source of my repayment funds.
If you want to borrow money in advance, you must ensure that you have sufficient funds. Don't apply to the bank for early repayment just because I suddenly have irregular temporary funds, and don't apply for early repayment just because I expect to need funds in the near future. Due to the strong professionalism of individual housing loans, loans that can only be applied for housing purchase and other purposes are generally not approved. Even if the housing mortgage loan is used, it is difficult to obtain an application without certain conditions, or it is difficult to obtain a loan with a more favorable interest rate and a longer term than the housing loan.
Fourth, adhering to a certain repayment amount will help individuals to avoid taxes reasonably.
According to the existing policy on individual tax payment, the expenses that individuals spend on supporting their parents, educating their children and paying interest on housing loans can be stopped as special deductions, which can reduce the personal income tax payment to a certain extent.
If you want to advance the loan, you should not only pay attention to your own financial situation, but also comprehensively analyze the existing loan cost and the possible income of the existing funds, rationally use the existing conditions and improve the efficiency of the use of funds.