At present, there are two payment methods for buying a house in China, one is full payment and the other is loan. A house ranges from hundreds of thousands to tens of millions, so many people will choose loans to buy a house.
Loans to buy a house can be divided into commercial loans and provident fund loans. Which of the two loan methods is more cost effective? What's the difference between them? Only by choosing the right loan method can we spend less money.
Comparison between provident fund loans and commercial loans
Compared with commercial loans, provident fund loans will have different loan interest rates and quotas. Provident fund loans are much more cost-effective because the interest rate of provident fund loans is relatively low. China's provident fund loan interest rate is unified nationwide. The interest rate of provident fund loans for more than five years is 3.25%, and the benchmark interest rate of commercial loans for more than five years is 4.9%.
At present, the commercial loan interest rate of the first suite of most banks will rise by about 10%, that is, the actual commercial mortgage interest rate in China will be higher than 4.9%. The higher the loan interest rate, the more the borrower has to bear the loan interest expenses. It can be seen that it will be more cost-effective to choose a housing provident fund loan to buy a house.
However, provident fund loans also have many conditions, such as loan amount and loan term. In addition, you need to pay a certain number of years of provident fund in accordance with local policies before you can apply for provident fund loans.
Therefore, before handling the provident fund loan business, it is best to go to the local provident fund management center to understand the loan requirements, and then apply for provident fund loans according to your own situation.
Provident Fund loan process
Now the house price in our country is high. For most families, it is difficult to buy a house in full, so more and more people will choose loans to buy a house. Provident fund loan is the most common way of mortgage loan. Provident fund loans are more popular because the interest rate is lower than that of commercial loans. So how to borrow provident fund loans?
Process of handling housing provident fund loan:
1. Application: When buyers decide to apply for housing provident fund loans, they can first consult the local housing provident fund management center to see if they meet the conditions for housing provident fund loans. Eligible, you can directly fill in the housing provident fund loan application form and formally apply for a loan.
2. Bank review: When the borrower fills in the loan application materials and submits them to the bank, the bank will review the materials provided by the borrower. After approval, the bank will submit the loan application materials to the local housing provident fund management center.
3. Examination and approval of the provident fund center: After receiving the information submitted by the bank, the provident fund management center will conduct a final examination of the borrower's loan application, and then inform the bank of the examination results.
4. Lending: After the approval, the bank informs the borrower to go through the relevant formalities, and then the provident fund management center entrusts the bank to issue loans, so that users who have obtained loan funds can repay on time.
Interest rates and conditions of provident fund loans
At present, China's provident fund loan interest rate is a unified standard, and there is no interest rate fluctuation. The interest rate of provident fund loans within five years is 2.75%, and the interest rate of provident fund loans over five years is 3.25%. Although the interest rate of provident fund loans is relatively low, not everyone can apply for provident fund loans and housing provident fund loans. Generally speaking, borrowers need to meet the following conditions:
1. The borrower has paid the housing provident fund in full for more than 6 months, and some areas require to pay the housing provident fund in full for more than 12 months;
2. The borrower's purchase behavior is true and effective, and he can provide information such as the purchase contract and pay more than 30% of the down payment for the purchase;
3. The borrower has the ability to repay the loan principal and interest;
4. The borrower's personal credit status is good;
5. The borrower meets other conditions stipulated by the provident fund management center and the bank.
Summary: the interest rate of provident fund loans is lower than that of commercial loans. Using the provident fund to buy a house can save a lot of money.
2. Which of the two loan methods is more cost-effective?
Average capital refers to a repayment method of loans. During the repayment period, the total amount of loans is divided into equal parts, and the same amount of principal and interest generated by the remaining loans of the month are repaid every month. In this way, because the monthly repayment amount is fixed and the interest is less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is less and less. Matching principal and interest refers to a repayment method of housing loans, that is, repaying the same amount of loans (including principal and interest) every month during the repayment period, which is different from the average capital.
That is to add up the total principal and interest of the mortgage loan, and then distribute it evenly to each month of the repayment period. The monthly repayment amount is fixed, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. This method is the most common and recommended by most banks for a long time.
Determine the repayment ability according to your own income.
Three, there are two kinds of loans, which is more cost-effective. Are these two methods interchangeable? ...
The less bank loans, the greater the preferential policies. I recommend you to ask Guangzhou Su Long Loan Service Co., Ltd., which is a financial investment/consulting service institution that has been operating steadily for many years. With the tenet of "being friendly, sincere, convenient and efficient, and serving the people" and the business philosophy of being professional, standardized, safe and efficient, the company provides financing, investment guarantee, contract performance guarantee and investment management consulting services for enterprises and individuals.
4. Which of the two repayment methods for buying a house by loan is more cost-effective and why? thank you
The interest rate of provident fund loans is low, which is convenient for free repayment. Commercial loans can be more loans, and provident fund loans can only be up to 403,000 yuan. In other words, if you have a high education, a high salary and a high professional title, you can evaluate the loan level. You can borrow up to 520 thousand. If it is not enough, you can choose a provident fund loan. Commercial loan = portfolio loan.
The provident fund was adjusted from the loan amount of 1 in July this year to the maximum loan of 600,000.
The loan interest rate of provident fund is 4.86, and the preferential interest rate is 6. 12.
Are you talking about the average capital and the equal principal and interest of commercial loans?
Matching principal and interest repayment method: repay the loan principal and interest in full.
Average repayment method: that is, the borrower repays the principal in equal amount every month, and the loan interest decreases month by month.
The difference between two repayment methods:
The average capital repayment method keeps the principal unchanged in each repayment amount during the whole repayment period, and the repayment interest decreases month by month; The total principal and interest decreases month by month. This repayment method has great pressure to repay in advance, and is suitable for people with higher income or who want to withdraw cash.
The repayment method of equal principal and interest is the same in each period, and the repayment amount in the previous period is small, and the total monthly principal and interest is equal. This repayment method takes a long time because the repayment speed of the principal is relatively slow and the total interest of repayment is higher than that of the general principal repayment method with the same term.
At present, there are two main repayment methods for individual housing loans: equal principal and interest repayment method and average principal repayment method. Because many people don't understand the principle of bank interest calculation, they mistakenly think that the average capital repayment method is not the case at all.
I. Loans
As we all know, every day money is deposited in the bank, there will be a day's interest. The more money you save, the more diversified the interest you get. If the bank lends one more day, you have to pay one more day's interest, and the more interest you lend to the bank.
The calculation formula of bank interest is: interest = amount of funds × interest rate × occupied time.
Therefore, the amount of interest, the profit factor can only be the reality of funds, rather than which repayment method is adopted. !
Different repayment methods are only set to meet the different needs or consumption preferences of people with different incomes, different ages and different consumption concepts. Its essence is nothing more than "loan" or "chop and change", which leads to the long-term use of loan principal and short-term use, and then affects the actual increase or decrease of interest with funds.
It can be seen that no matter which repayment method is adopted, banks do not do business at a loss, and customers do not have the benefit of saving interest expenses.
Second, the comparison between the equal principal and interest repayment method and the average capital repayment method.
1, equal repayment method, that is, the borrower repays the loan principal and interest in equal amount every month, in which the monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled every month.
Because the monthly repayment amount is equal, in the initial monthly repayment of the loan, after excluding the monthly settlement interest, the loan principal is less; In the later stage of the loan, due to the continuous reduction of the loan principal, the loan interest is continuously reduced in the monthly repayment amount, and the monthly repayment of the loan principal is more.
This repayment method actually takes up more bank loans and takes longer. At the same time, it is also convenient for borrowers to reasonably arrange their monthly life and financial management (such as renting a house, etc.). ). It is undoubtedly the best choice for those who are proficient in investment and are good at "taking Qian Shengqian as their home"!
2. Average capital repayment method, that is, the borrower repays the loan principal with the same amount (loan amount/loan months) every month, calculates the monthly loan interest according to the remaining loan principal at the beginning of the month, and settles it every month, and the sum of the two is the monthly repayment amount.
Because the monthly repayment of the principal is fixed, the monthly loan interest decreases month by month with the decrease of the principal balance, so the average capital repayment method has a large monthly repayment amount at the initial stage of the loan, and then decreases month by month (monthly repayment amount = monthly repayment of the principal × monthly interest rate). For example, 654.38 million yuan, 15-year provident fund loan, the monthly repayment amount of the equal repayment method is 760.40 yuan, while the first month repayment amount of the average capital repayment method is 923.06 yuan (a decrease of 2.04 yuan per month), which is higher than the former 163.34 yuan. Because the latter repaid part of the loan principal in advance, it actually reduced the occupation and shortened the occupation of the bank's money. Of course, the loan interest is generally small (10 is 36 13.55 yuan), which does not mean that the borrower has gained any additional benefits!
This repayment method is suitable for people whose living burden will be heavier and heavier (pension, medical care, children going to school, etc.). ) or income is expected to decrease gradually.
It can be seen that the repayment method in average capital is not an option to save interest. If there is really a good way to save interest, it is to learn to spend rationally, according to one's own economic strength, to live within one's means, to borrow as little as possible and to borrow short money. This is the only feasible way.
In short, the basis of comparison is different, and the comparison itself has no practical significance. If we insist on comparing two different repayment methods and find out which one pays less interest than the other, it will only mislead and confuse borrowers!