Which one is more favorable, provident fund loan or commercial loan? This is an issue that many home buyers have to consider when buying a house. Although provident fund loans may take longer than commercial loans, in fact, from a series of policies, the benefits of provident fund loans are relatively obvious, and they are completely popular among commercial loans. So why do you say that? Next, let’s take a look at provident fund loans.

The down payment ratio of provident fund loans is even lower

From the perspective of the 3.30 New Deal, currently you can apply for a Nanning provident fund loan as long as you have paid the housing provident fund normally for more than six consecutive months (inclusive), and For families purchasing their first ordinary owner-occupied house, the loan down payment ratio is 20%, while for those purchasing a second home and having paid off the loan for the first home, the loan down payment ratio is 30%. If you purchase a first home with a commercial loan, the down payment ratio will still be 30%, and the down payment ratio for the second home will be adjusted to no less than 40%.

It seems that the threshold for buying a house with a provident fund loan is lower. Take a house worth RMB 600,000 as an example. If it is your first home, you need to prepare a down payment of 120,000 yuan for a provident fund loan, and a down payment of 180,000 yuan for a commercial loan. A provident fund loan requires a down payment of 60,000 yuan significantly less than a commercial loan, which can ease the purchase of a house. down payment pressure.

The interest rate of provident fund loans is more favorable

According to the interest rate cut notice issued by the central bank on February 28, starting from March 1, the base interest rate for commercial loans over 5 years is 5.9; provident fund loans For more than 5 years, the base interest rate is 4. From the direct comparison of interest rates, it can be seen that the interest rate of provident fund loans is lower than that of commercial loans.

So, with the same loan amount and repayment period, provident fund loans can save tens of thousands of yuan in interest compared with commercial loans. Take a house worth 600,000 yuan as an example, with a loan of 420,000 yuan. If the commercial loan term is 25 years, the average monthly repayment is 2,680.45 yuan, the total payment over 25 years is 804,135.11 yuan, and the total interest payment is as high as 384,135.11 yuan. For the same provident fund loan with a term of 25 years, the average monthly repayment is 2,216.91 yuan, the total repayment in 25 years is 665,074.42 yuan, and the total interest payment is 245,074.42 yuan. Compared with commercial loans, the monthly payment can be 463.54 yuan less, 25 years* **Save interest expenses by nearly 139,060.69 yuan.

The repayment method of provident fund loans is more flexible

For early repayment of commercial loans, the amount must be a multiple of 10,000 or 50,000, and there are clear regulations on the number of early repayments, such as You can only repay in advance three times a year. When a commercial loan is repaid in advance, the offset amount includes part of the principal and part of the interest.

There are no specific regulations for early repayment of provident fund loans. As long as the repayment is greater than the minimum repayment amount, all repayments are regarded as early repayments. There are three early repayment opportunities every month, and the lender can even pay monthly Adjust your early repayment amount at any time. If a provident fund loan is repaid in advance, the entire amount will be offset against the loan principal and the total interest will be reduced.

Early repayment by commercial banks not only requires a phone reservation several months in advance, but some even require the lender to provide written documents, which is inconvenient. For early repayment of provident fund loans, you only need to call to make an appointment three working days in advance. No written documents are required to adjust the early repayment amount over the phone.

Others of provident fund loans

Provident fund loans have high percentages and low down payment pressure. Commercial loans can generally only be extended to 70%, and home buyers are under greater pressure to make down payments. Provident fund loans can be loaned up to 9.5%, so home buyers have less down payment pressure; the loan period is long and the monthly repayment amount is small. The loan period of commercial loans can only be up to 25 years, and most second-hand houses can only be loaned for 20 years, which puts a lot of pressure on monthly payments; while the term of provident fund loans can be up to 30 years, and the pressure on monthly payments is small; The age limit is more flexible.

Commercial loans have strict requirements on the age of the house. Most banks will not grant loans to houses older than 85 years old, and the loan period decreases with the age of the house. Provident fund loans have more flexible restrictions on the age of the house. The sum of the age of the house and the loan period does not exceed 50 years; all districts and counties can be loaned. Therefore, if you have the qualifications and conditions for a provident fund loan, it is best to choose to use a provident fund loan when you buy a house.