The money in the provident fund account can't be used as the down payment for buying a house. Its biggest function is to "repay the loan" to offset the repayment amount of the mortgage.

Therefore, how to use the monthly provident fund to offset your mortgage is a science. Generally speaking, there are two common ways for the provident fund to "repay the loan": monthly and annual. In the end, which way can achieve the best "burden reduction" effect cannot be generalized. The key depends on the cash flow of the mortgage lender itself.

annual offset: one-time offset of the least interest

"annual offset", also known as one-time repayment method. Unlike "monthly loan repayment", "annual loan repayment" directly uses all the balance in the provident fund account to offset the loan principal. According to the regulations of the Provident Fund Center, the "annual rush" must give priority to the repayment of the principal of the provident fund loan, that is to say, the principal of the commercial loan can only be reduced after all the principal of the provident fund loan is repaid. In fact, the "year rush" method is a kind of prepayment, which saves most interest on provident fund loans. At the same time, this method is more suitable for buyers with large balance in provident fund accounts and little pressure on cash expenditure at the initial stage of loans.

according to the regulations of the provident fund center, the use of "annual mortgage" also needs to meet some conditions: first, the housing loan must be over one year before it can be used to offset the principal; Second, under normal circumstances, the amount of the offset principal is not less than 6 months' repayment. In addition, after the "year rush", the principal of the loan will be reduced, and the corresponding monthly repayment amount will also be reduced. For those who have sufficient repayment ability, they can go to the bank to change their repayment methods at this time, such as keeping the monthly repayment amount unchanged and shortening their repayment period to achieve the purpose of further saving interest.

monthly mortgage: it can reduce the pressure of monthly loan supply

"monthly mortgage", also known as monthly repayment method, refers to the bank withdrawing funds from the provident fund account month by month to pay the principal and interest of housing loans. For most buyers, the maximum provident fund loan they can apply for is generally not enough to cover all mortgages, and the monthly provident fund income is generally less than the total monthly repayment. Therefore, the combination loan model of provident fund plus commercial loans and the "monthly rush" method of provident fund are common choices for most people.

For example, Mr. and Mrs. Liu choose a portfolio loan, * * * 35, yuan provident fund loan (15 years) and 65, yuan commercial loan (3 years), and the total income of their provident fund account is 3,5 yuan per month, which can be more than 5 yuan besides deducting the provident fund loan. The monthly after-tax income of Mr. and Mrs. Liu is about 12, yuan, and part of the down payment for the house purchase is subsidized by relatives. At the same time, the two plan to add more salaries within one year. Therefore, the pressure of paying off debts at the initial stage of the loan is greater, so they choose the monthly payment method.

after the bank has handled the power of attorney for "repaying the loan with the provident fund", the bank will withdraw 3,5 yuan of the provident fund every month. First, the monthly principal and interest of the provident fund loan will be about 3, yuan, and the remaining 5 yuan will be used to repay the commercial loan (the monthly principal and interest of the commercial loan is about 3, yuan). In this way, Mr. Liu also needs to deposit 25 yuan into the repayment account every month to make up for the business loan.

In this way, after deducting the expenses such as mortgage, living expenses and loans from relatives, they can save nearly 5, yuan each month. In this way, after one year, they can accumulate about 6, yuan of "maternity fund", which can basically relieve Tian Ding's worries.

1. Users should bring relevant information to the designated bank to handle the monthly mortgage repayment of housing provident fund, and receive and fill in the Application Approval Form for Monthly Mortgage Repayment of Housing Provident Fund;

2. The bank will accept the application according to the submitted materials. If it is approved, the bank will stamp the approval form, and then the user will take the approval form to the local provident fund management center for acceptance;

3. The local provident fund management center conducts the examination and approval. After approval, the loan can be repaid monthly. Buying a house with provident fund loan means that the depositor uses his own provident fund account loan to buy a house. However, the depositor must meet several conditions when making a loan. First, the lender must have full capacity for civil conduct, second, he must have a stable career and income, and have the ability to repay the principal and interest of the loan. Finally, he must meet the conditions and policies of provident fund loans.

Legal basis:

Article 26 of the Regulations on the Management of Housing Provident Fund, employees who have paid housing provident fund can apply for housing provident fund loans from the housing provident fund management center when purchasing, building, renovating or overhauling their own houses. The housing provident fund management center shall, within 15 days from the date of accepting the application, make a decision on whether to grant or not to grant loans, and notify the applicant; If the 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.

Article 27 An applicant who applies for a housing provident fund loan shall provide a guarantee.

article 28 the housing provident fund management center may use the housing provident fund for purchasing government bonds with the approval of the housing provident fund management Committee on the premise of ensuring the withdrawal and loan of the housing provident fund. The housing provident fund management center shall not provide guarantees to others.