What are the categories of housing loans? – Financial & Insurance News

What are the categories of housing loans?

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1. Commercial loan

This is the main housing loan, the first suite can be loaned 70%, but not more than 5 million; the second suite can only be loaned 30%, if the second suite is a second home, it can also be loaned 70%.

The current interest rate for loans over 5 years is 4.9%.

2、Public Provident Fund Loan

CPF loans are much more cost-effective, the interest rate is only 3.25%, 33% lower than commercial loans, 1 million loans for 20 years, choose CPF loans interest can save more than 210,000.

There is a limit to the amount of CPF loans, and the policy is not the same everywhere. In Guangzhou, for example, individuals can only borrow up to 600,000, and two couples can only borrow 1 million.

The prerequisite for applying for a CPF loan is that you have a CPF contribution, and currently there are a large number of small and micro enterprises that do not have a CPF contribution, and these people are not eligible to apply. Some of them are nominally saving provident fund, but only 4 or 5 hundred yuan, this situation can only apply for 150,000 yuan, which is not very useful.

3、 Housing portfolio loan

It is the CPF loan + bank commercial loan. Because the provident fund loan is much more cost-effective, so the first certainly apply for provident fund loan, insufficient part to apply for commercial loans.

To buy the first 10 million housing for example, first apply for a CPF loan of 1 million, and then apply for a commercial loan of 5 million, if the loan for 30 years, you can save more than 340,000 interest.