Nowadays, house prices are also very high, so when everyone buys a house now, they will choose a loan. But when it comes to loans to buy a house, many people will choose provident fund loans, because provident fund loans have great benefits, but they also have many disadvantages.

You need to understand it clearly before using provident fund loans. Today we will talk about the interest rate reduction of provident fund loans?

Also, let’s talk about the disadvantages of provident fund loans?

Has the provident fund loan interest rate been reduced? The provident fund loan interest rate has not changed because the provident fund loan and commercial loan pricing methods are different.

For example, commercial loan pricing is switched to LPR pricing, that is, the new mortgage interest rate is LPR + basis points for the same period. Now, LPR is quoted once every month on the 20th. The monthly quote may be different, and applicants apply for it at different times.

Mortgage interest rates will vary, and mortgage interest rates vary in different regions.

Provident fund loans are still priced at the fund interest rate, and the adjusted interest rate is still implemented, that is, 2.75% for 5 years and below, and 3.25% for more than 5 years.

For this reason, no matter how the LPR changes, it will not affect the provident fund loan interest rate.

Disadvantages of provident fund loans Disadvantages 1. Loan limit Since the interest rate of provident fund loans is so low, why do some people prefer to give up provident fund loans and apply for commercial loans?

The main reason is that there is a maximum provident fund loan limit. Although the maximum amount applied for by individuals and couples is different, in first- and second-tier cities, even if the provident fund loan reaches the maximum amount, it is not enough to buy a house.

Disadvantage 2. The provident fund payment time is limited. If you want to use a provident fund loan to buy a house, you first need to pay the housing provident fund for a certain number of years.

Different cities have different deposit time for provident fund. Some cities require borrowers to continuously pay provident fund in full for more than six months (inclusive) and the provident fund account is in normal deposit status. Some cities require borrowers to make continuous deposits for one year (inclusive).

Only the above can get a loan.

Disadvantage 3. The loan cycle is too long. Since the provident fund loan process is complicated, the loan cycle will be relatively long. If a home buyer is in a hurry to buy a house, then the provident fund loan is not realistic, and the only option is commercial loans.

Disadvantage 4. The developer will refuse. Compared with commercial loans, the return speed of provident fund loans to developers is generally slower.

Judging from the current provident fund repayment speed of various banks, it generally takes 23 months, while the repayment speed of commercial loans is faster and can be controlled at about 1 month to 1 and a half months.

From the perspective of capital recovery, developers naturally hope that buyers will choose commercial loans with faster repayments, which is why real estate developers prefer commercial loans and one-time payment customers in terms of home purchase discounts.

Disadvantage 5. The provident fund account balance affects the loan limit. The provident fund account balance will affect the loan limit. If the account balance is too small, the loan limit that can be applied for will be lower. Therefore, before applying for a provident fund loan, it is best not to touch the provident fund account balance.

However, not all urban provident fund loan limits are affected by the account balance.

Disadvantage 6. It is difficult to apply for provident fund loans in other places. Although the country has implemented provident fund loans in other places, there are still many problems in actual operation, and it is difficult to meet everyone’s loan needs. Therefore, if you want to return to your hometown to buy a house, it is best to consult the local area first.

Housing Provident Fund Management Center.

Disadvantage 7: The property market is overheated, and provident fund loans have no advantages. The quality of the projects will also cause discrimination against provident fund loans; good projects that are easy to sell are not willing to accept the provident fund loan model.

Because when you apply for a provident fund loan, the bank there has not yet approved it, and the house here has almost been sold, so the developer will clearly tell you to use a commercial loan when selling the property.

Anyway, there are only so many houses. If you don’t buy it, others will buy it, so you don’t have to worry about not being able to sell it.