Let's talk about the mortgage. In addition to the usual commercial loans, many people would give priority to the Provident Fund when applying for housing loans. This choice is justified - Provident Fund loans are usually more cost-effective. But do you know what the difference in interest is between public and commercial loans? Let's make some comparisons。

What's the difference between interest on a Provident Fund loan and a general loan

Let us first look at the difference in interest rates between the Provident Fund loans and ordinary loans. For example, if you choose to borrow from the Provident Fund, the interest will be $420,000 for 30 years. If commercial loans were chosen, then interest would be $6.43 million over 30 years at an interest rate of 65.5 per cent. From this perspective, the interest savings from the use of the Provident Fund loan amount to approximately $231,000. A lot, huh? That's the charm of all of this。

SO, WHAT ARE THE ADVANTAGES OF A PPP LOAN IN ADDITION TO LOW INTEREST? FIRST, IT PROVIDES A MORE FLEXIBLE APPROACH TO REPAYMENT. NO APPOINTMENT IS REQUIRED FOR EITHER THE PARTIAL PAYMENT OR THE FULL REPAYMENT. AFTER PARTIAL REPAYMENT, YOU MAY ALSO CHOOSE TO REDUCE THE REPAYMENT PERIOD OR KEEP THE REPAYMENT PERIOD UNCHANGED AND REDUCE THE REPAYMENT AMOUNT. SECOND, A PROVIDENT FUND LOAN CAN HAVE A MINIMUM DOWN PAYMENT OF 201 TP3T FOR THE PURCHASE OF HOUSING. IN ADDITION, INTEREST ON PROVIDENT FUND LOANS MAY BE OFFSET AGAINST PERSONAL INCOME TAX。

However, while the interest rate of the Provident Fund loans is higher than that of commercial loans, there are limitations, such as the lower level of credit available than commercial loans. The Provident Fund loan may not be sufficient to cover your entire house purchase. In addition, your Provident Fund account balance may affect the loan line. If the account balance is too low, you may not be able to apply for the expected loan amount。