How many payment methods are there for buying a house?

First, three kinds of loans

(a) provident fund loans

Pros:

1, provident fund loans for more than 5 years loan interest rate of 3.25%, resulting in a total interest is low, relatively save money.

Disadvantages:

1, the loan requirements, the use of provident fund loans, requires good personal credit, in addition, since the date of the loan for the first six months, personal provident fund account must be continuous normal and full payment.

2, the loan property is restricted, provident fund loans for the purchase of ordinary residential families, non-ordinary residential and non-residential, can not use provident fund loans.

3, the loan amount is limited, provident fund loan amount is limited by the number of years of personal provident fund contributions, the balance, in addition, the policy also stipulates the amount of provident fund can be loaned.

4, in the case of family provident fund loans have not been settled, you can not use provident fund loans to buy a second suite.

5, the process is complex, slow disbursement, many properties refused to use CPF loans.

(2) Commercial loans

Advantages:

1, the loan amount is high, is more common loan.

2, compared with the provident fund loan, the loan conditions in terms of less restrictive, the first suite, the second suite, non-common residential, non-residential, can use commercial loans.

3, compared with provident fund loans and combination loans, the loan process is relatively simple and loan disbursement is fast.

Disadvantages:

1. The benchmark interest rate for loans is 4.9 percent, and the total interest rate for loans is relatively high.

2, "recognizing the house and recognizing the loan", that is, to have had a loan record, no house under the name of the house and then buy a house, is also regarded as a second suite.

(C) Combination loan

Advantages:

1, the loan interest rate is more moderate and the loan amount is larger.

Disadvantages:

1, for the combination loan, need to meet the requirements for both provident fund loans and commercial loans, the borrower needs to apply for a provident fund loan, and then apply for a commercial loan, prepare more materials, the procedures are more cumbersome, and it will take two to three months to complete.

After a borrower applies for a combination loan, the commercial loan portion will remain on file in the central bank's personal credit system, and will be counted as a second suite assuming the buyer wants to buy a home again.

Two, choose the loan method

1, if you meet the conditions of the provident fund loan, you can choose the provident fund loan, after all, the provident fund loan interest rate is relatively low, the total interest is less, can save a lot of money. If the CPF loan amount is not enough, you can choose to couple two people *** with the use of CPF loans or in the name of the family *** with the loan, generally 2 people and more CPF loan amount than a single person to be higher.

2. It is not recommended to choose a combination of loans, its loan process is more troublesome, and the commercial part of the loan can not be transferred to the CPF loan. It is recommended that you can choose a commercial loan first, and then switch to a CPF loan after meeting the CPF loan conditions. If you choose a combination loan, make sure that the CPF loan is as much as possible and the commercial loan is as little as possible. This is because the interest rate on CPF loans is far more favorable than commercial loans, and you can save more interest.

3. If the down payment is small and you need a higher loan amount, it is more appropriate to choose a commercial loan.

(2) choose the repayment method

income is more stable young people, it is recommended to choose equal principal and interest.

Higher income, the age of 40-60 people, it is recommended to choose the equivalent principal.

Each type of loan and repayment method has its own characteristics. Before buying a home loan, home buyers need to make a comprehensive assessment of their own assets, the family's existing economic strength (economic strength includes deposits and realizable assets in two major parts), and they need to make a reasonable expectation of the family's future income and expenditure in order to choose the right loan and repayment method.