What kinds of housing loans are there?

There are several ways to buy a house by loan: provident fund loan, commercial loan and portfolio loan.

Buying a house in full is the lowest interest rate among all ways of buying a house, and the preferential discount for developers to buy a house in full is greater than that for all loans, so developers can recover funds quickly. However, for property buyers, the financial pressure is great, although it can save a lot of loan interest, but the large amount of money needed to buy a house in full is unbearable for ordinary families.

2. Provident fund loans to buy a house

The interest rate of provident fund loans is lower than that of commercial loans, and the financial pressure on buyers is relatively small. Some property buyers with higher provident fund will deduct it directly from the provident fund account without paying it back for several years. However, the loan procedures are cumbersome and the loan is slow. Not only must the provident fund be paid in full and on time for a certain number of years before it can be used, but it also has certain restrictions on real estate.

3. Commercial loans to buy a house

Compared with provident fund loans, commercial loans have simple procedures and fast loans, and there are no restrictions on property buyers. Basically, you can buy a house with a commercial loan. However, the interest rate is relatively high, which has certain economic pressure on buyers compared with provident fund loans.

4. Portfolio loan to buy a house

The maximum amount of provident fund loans that can be issued by the housing provident fund management center is generally1-290,000 yuan. If the purchase price exceeds this limit, the insufficient part shall apply to the bank for commercial housing loans. These two kinds of loans are collectively called portfolio loans. This business can be handled by the real estate credit department of the bank. The interest rate of portfolio loan is moderate, and the loan amount is large, which is more for the lender to choose.

However, if the borrower buys a house again after applying for a portfolio loan, it will be counted as a second suite. If you use the provident fund loan to buy a house directly, as long as the borrower pays off the first home loan and applies for the provident fund loan to buy a house again, it will still lend according to the first home standard.