The purpose of housing provident fund:
1, loan to buy a house. To buy affordable housing or commercial housing, you can use provident fund loans, and the interest will be less than ordinary commercial loans. Commercial loans can draw provident fund for down payment or repayment of principal and interest. Generally, you can buy a house with a provident fund loan if you deposit it for more than 6 months;
2. Rent a house. The provident fund can pay the rent for renting a house;
3. Parents buy houses for their children or treat major diseases. If you use a commercial loan to buy your own house, you can withdraw your parents' provident fund after paying the down payment, use a personal housing provident fund loan to buy your own house, and withdraw your parents' provident fund after paying the down payment. Or family members withdraw provident fund to pay hospitalization expenses;
4. Provident fund can be withdrawn at one time. You can withdraw it in one lump sum before closing the account. For example, retirement, retirement, and going abroad to settle down.
The advantages of using provident fund loans are:
1. The housing provident fund paid by employees and the provident fund paid by the unit belong to employees;
2. Rolling interest;
3. Enjoy tax exemption;
4. The interest on loan purchase is reduced. For example, if the loan is RMB 6,543,800+0.2 million with a term of 30 years, all interest can be saved by using the equal repayment method.
5. You can repay the loan in advance.
Legal basis: Article 4 of the Regulations of People's Republic of China (PRC) Municipality on the Administration of Housing Provident Fund.
The management of housing provident fund shall follow the principles of decision-making of housing provident fund management committee, operation of housing provident fund management center, storage of special bank accounts and financial supervision.
Article 5
The housing accumulation fund shall be used for the purchase, construction, renovation and overhaul of owner-occupied housing by employees, and no unit or individual may use it for other purposes.