1, the loan interest rate is low. Compared with commercial bank loans, the loan interest rate of provident fund loans is relatively low. According to the current regulations, the interest rate of provident fund loans is less than five years, and the annual interest rate is 2.75%; For more than five years, the annual interest rate is 3.25%;

2. The loan term is long. The term of provident fund loans is relatively long, up to 30 years, and the monthly repayment pressure is small. Commercial bank loans have strict restrictions on second-hand housing loans, for older buildings, loans can only be 20 years;

3. The upper age limit of the applicant is very high. Generally speaking, the age required for commercial bank loans plus the loan period must be less than 65 years old, while the longest provident fund loan can reach 70 years old;

4. The repayment method is flexible. The repayment method of provident fund loans is flexible. As long as the monthly repayment amount is not lower than the "minimum repayment amount", repayment can be freely arranged, and the part exceeding the "minimum repayment amount" is regarded as the prepayment amount. Commercial bank loans have strict frequency requirements for early partial repayment. For example, CCB mortgage can only be repaid in advance once a year. There is no limit on the number of times for most housing provident funds to repay loans in advance, and the repayment amount is an integer multiple of 1 10,000 yuan each time;

5. The account balance can be used to offset the loan. The balance of the housing reserve account can be used not only to apply for loans, but also to repay mortgage loans. You can choose the balance of one-time mortgage account, and then recalculate the repayment plan according to the remaining principal and repayment period, which can reduce interest expenses and reduce monthly payment. You can also choose to collect loans on a monthly basis and automatically deduct them from the provident fund account on the repayment date of each month;

6. The down payment ratio is low. The minimum down payment ratio of provident fund loans can reach 20%, while commercial bank loans are basically around 30%;

Legal basis: Article 5 of the Regulations on the Administration of Housing Provident Fund.

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.

Article 26

Workers who have paid housing provident fund can apply for housing provident fund loans to the housing provident fund management center when purchasing, building, renovating or overhauling their own houses. The housing provident fund management center shall make a decision on whether to grant loans within 15 days from the date of accepting the application, and notify the applicant; Where a loan is granted, the entrusted bank shall go through the loan formalities. The risk of housing provident fund loans shall be borne by the housing provident fund management center.