New policies for withdrawing housing provident funds in 2022

1. Adjust the standards for determining the number of housing units: buy a loan but not a house

The determination of the number of housing units is related to the down payment ratio, mortgage interest rate and other home purchase costs. Recently, the two places have successively adjusted their policies. The number of housing units is determined by provident fund loans.

Since January 17, Zigong, Sichuan, has implemented the identification standard of only approving loans but not properties: if there is neither housing provident fund loan record nor unfinished housing commercial loan, the first home loan policy will be implemented; If there is a recorded housing provident fund loan that has been settled or a housing commercial loan that has not yet been settled, the second home loan policy will apply.

2. Reducing the down payment ratio for second homes

While raising the provident fund loan limit and relaxing the criteria for identifying second homes, some cities have also made varying degrees of adjustments to the down payment ratio for second homes.

Starting from January 21, 2022, Beihai, Guangxi has taken the lead in lowering the down payment ratio for second homes. It stipulates that for households with deposited employees to purchase a second home or apply for a second housing provident fund loan, the minimum down payment ratio will be reduced from 60 % was lowered to 40%. At the same time, starting from February 1, Fuzhou will adjust the down payment ratio from 50% to 40% for a second pure housing provident fund loan.

3. Many places have increased loan limits

Since this year, Guangxi, Quzhou in Zhejiang, Dongguan in Guangdong, Zhongshan in Guangdong, and Xinxiang in Henan have successively adjusted their policies to increase the provident fund loan limit for home purchases.

On March 1, Zhongshan, Guangdong, and Xinxiang, Henan, announced increases in provident fund loan limits. Zhongshan clearly applies for housing provident fund loans for purchasing first and second homes. The maximum housing loan limit for one depositor is adjusted from the current 400,000 yuan to 500,000 yuan. The maximum housing loan limit for two or more depositors applying for the same time is from The current RMB 800,000 is adjusted to RMB 900,000. Xinxiang stipulates that if one party unilaterally pays the housing provident fund in full and on time, the maximum loan amount will be increased from 300,000 yuan to 400,000 yuan. What are the benefits of provident fund loans

1. Large loan amount and long term

Home buyers all know that when the total house payment is certain, the larger the loan amount, the larger the down payment. The less, the less pressure; the longer the loan term, the smaller the monthly payment, the less pressure. Compared with housing provident fund loans and commercial loans, provident fund loans have obvious advantages. Usually, if there is a policy, the policy content will be biased towards provident fund loans. For example, the down payment for a commercial loan should be at least 30%, and for a provident fund loan, the down payment must be at least 20%.

2. There are few restrictions on the age of the house and the age of the lender

Many home buyers from other places have no choice but to face age restrictions, which makes them unable to apply for commercial loans when buying a house, or they cannot get enough loans. Because the age limit for commercial loans is that the sum of the borrower's age and the loan term must be less than 65 years old, while there is no age limit for provident fund loans. Regarding the age of the house, commercial loan requirements are relatively strict. For example, loans were basically not granted for houses before 1985. However, provident fund loans have more flexible requirements for the age of the house. You can apply if the sum of the house age and the loan term is not more than 50 years.

3. It can be withdrawn in advance

The use of provident fund is not only for borrowing money to buy a house. The housing provident fund is used to purchase and build a self-occupied house with independent property rights, or to issue relevant valid certification materials. If the family's difficulties can be proven, the housing provident fund can also be withdrawn.