Provident funds and commercial loans, as the main forms of mortgage, have advantages and disadvantages. Would it be cost-effective to combine the two, i.e., to use a “stoll-to-business” approach? The analysis below is presented from several angles。

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FIRST, ANALYZE IT AT INTEREST RATES. THE INTEREST RATE ON PROVIDENT FUND LOANS IS GENERALLY LOWER THAN THAT ON COMMERCIAL LOANS, USUALLY AROUND 4.5%, WHILE THE RATE ON COMMERCIAL LOANS IS ADJUSTED TO MARKET CHANGES, AND IN THE CURRENT MARKET ENVIRONMENT THE ONE-YEAR LPR (LENDING MARKET QUOTATION RATE) IS NOW 4.6%. AS A RESULT, INTEREST RATES ON PROVIDENT FUND LOANS CAN BE SEEN TO BE LOWER. A CHOICE TO OFFSET COMMERCIAL LOANS THROUGH A POOL FUND WOULD REDUCE THE INTEREST RATE ON COMMERCIAL LOANS, THUS REDUCING THE OVERALL PRESSURE ON LOANS AND SAFEGUARDING THEIR PROFITABILITY。

Second, consideration should be given to analysing the modalities of repayment. Provident Fund loans typically take the form of an equivalent principal repayment, i.e. a monthly repayment of a certain amount of the same principal interest, whereas commercial loans may take the form of an equivalent principal repayment or an equivalent principal repayment depending on the borrower ' s own needs. If a commercial loan is offset by a Provident Fund, repayment may be made by the option of an equivalent principal, i.e., the principal is fixed on a monthly basis and interest is gradually reduced as the principal is reduced. The total interest on repayment of the equivalent principal is less. As a result, in general terms, it would be more cost-effective to set off commercial loans as well.

It should be noted, however, that the choice of the form of repayment against commercial loans would limit the freedom of use of the homeowner's funds. Because the Provident Fund offsets commercial loans on the assumption that there is a certain amount of the Provident Fund balance after the purchase of the house and that the principal is repaid in instalments as commercial loans. Therefore, financial constraints will have a direct impact on the subsequent asset application options of the purchaser, which means that the purchaser may need to face additional financial pressures or abandon part of the cash flow to cope with repayment pressures。

At the same time, using the form of a Provident Fund offset for commercial loans, buyers need to take into account a number of aspects and specific circumstances, such as mortgages, loan lines and purchase time, and indicators can affect the profitability of loans. Therefore, the specific choice of this type of loan needs to be considered in a comprehensive manner, leaving more time for reflection and operational space for home buyers。