Whether you're a senior investor or simply trying to upgrade your living conditions, there is a possibility of buying a second suite. So, have you ever had the trouble of using the Provident Fund for the purchase of the second suite

Is it possible for the second set of rooms to apply for a loan from the Housing Provident Fund

Provident Fund loans may be a sharp instrument for the purchase of a second suite. If you have used the Provident Fund loan to purchase the first set of houses and have fully repaid them, or if the first has been purchased and repaid with a mortgage through a commercial loan, the second set may be financed with the Provident Fund. Please note, however, that when a third and more dwelling is purchased, it is not possible to use a Provident Fund loan。

So what are the key conditions that you need to focus on when considering the purchase of the second suite of the Provident Fund loan

1. Nature of the house. It is essential that the two housing units are not small-owned housing units, if they are of a commercial nature, if they are affordable or price-limited. This requires you to consult the local Provident Fund Centre in advance to see if the housing you choose is eligible for a loan。

2. Housing size. There are certain limits to the size of the house purchased in some areas of the Provident Fund centre, and you need to know in advance and ensure that the chosen house meets the requirements。

3. Your credit position. The Provident Fund Centre will value your credit records and, if there is a non-performing loan record, it may affect the pass of the application。

4. Provident Fund account balance. The extent of the balance in the Provident Fund account affects the level of the Provident Fund loan that you can apply for, and it is therefore necessary to ensure that the balance in the account is sufficient。

5. Your income situation. The Provident Fund Centre will require that your monthly income be at least twice the monthly rate, which is the minimum, and that you may need higher monthly income if you have other outstanding external debt。

6. There must be no other Provident Fund loans. The Provident Fund Centre requires the applicant not to have multiple Provident Fund loans, which requires you to determine at the time of application that the loan in your name has been fully repaid。