When you buy a house with him, you'll be co-owners of the house. If you choose to purchase the house by way of a loan, the principal and sub-prime will be created during the course of the loan. So do you understand the differences between principal and sub-prime lenders in the equity loan chain? Now, let's get to the point。

What's the difference between a lender and a sub-creditor

First, the main differences are reflected in eligibility requirements. The requirements of the principal lender of a Provident Fund loan are often more stringent. When selecting a principal lender, a party with a higher income and a better credit record is generally considered. By contrast, the requirements of sub-creditors are relatively liberal。

Second, there are also differences in the order in which they are repaid. When repaying a loan using a pool fund, the principal's pool must be fully spent in order to have access to subprime funds。

Moreover, the information given in the letter-in-writing report is different. A record of the loan will be generated in the course of the application for a Provident Fund loan, but this record will only show that this information is not available in the client's personal letter report。

So, what are the principals and subprimes? The principal lender is the party that bears the responsibility for borrowing in the Provident Fund loan contract, which is usually the owner of the house or a co-owner. The principal needs a good credit record, the ability to repay the loan and the responsibility and risk of repayment. The sub-creditor is the other party to the loan as the borrower in the Provident Fund and is generally the spouse or relative of the principal lender. Their role is primarily to support principals in the completion of loan applications and approvals, as well as to assume the responsibility and risk of repayment。