Hello, we are here today to discuss a common form of home-buying loans — portfolio loans. It must be felt that the mere amount of the Provident Fund loan is overstretched, especially in the current period of high prices. This is a time when portfolio loans can be useful and help us to succeed in our dream of buying a house. But with regard to this portfolio, there is a puzzle: must its duration be consistent? Let's get to the point。

Do you have to match the duration of the portfolio

In order to understand this, it is first necessary to understand exactly what portfolio lending is. In short, portfolio lending is in fact a combination of commercial loans and Provident Fund loans, both of which must have the same length of time. In practice, their borrowing dates are the same, and the only difference is that they implement different interest rates。

To understand this, we have to understand that portfolio lending is not perfect. The disadvantages of portfolio lending are also evident compared to other lending modalities。

First, there are not many banks that handle portfolio loans, as the Provident Fund Management Centre generally works with a particular bank. This undoubtedly makes it more difficult for large borrowers to apply for portfolio loans。

Second, portfolio lending is cumbersome. After all, the two types of loans are carried out simultaneously, with more material and more complicated procedures. In addition, the process may take two to three months for the loan to be disbursed after the transfer of title and the completion of the mortgage registration, which some developers are reluctant to accept。

Then comes the question of costs. Since there were two types of loans, the guarantee and assessment fees would be minimal, and if an intermediary was also adopted, an additional commission payment would be required. This is certainly a considerable expense for us。

Finally, there is a risk of portfolio loans for buyers with replacement upgrades. Since the portion of the commercial loan will be retained in the letter-of-assist record, it may have an impact on the upgrading of the purchase of the house under the influence of the two-room policy。

These are the explanations of the duration of portfolio loans, the disadvantages of portfolio loans, etc., which, it is hoped, will be helpful。