In the early stages of buying a house, home buyers may choose commercial loans because their provident fund payments do not meet the conditions for provident fund loans. When a provident fund loan is available, you want to convert your commercial loan into a provident fund loan. In this situation, what should the borrower (home buyer) do? If you choose to convert business to public, how are the loan amount and loan period calculated, and what is the loan interest rate?

Processing procedures for converting commercial loans to provident fund loans

(1) Loan bank consultation and acceptance

The borrower consults the bank about the policies and relevant regulations for converting provident fund loans , complete the "Personal Housing Provident Fund Re-Lending Folder" under the guidance of bank staff, and prepare the following documents together with the borrower ***:

1. ID cards of the re-loaner and spouse, The original and copy of household registration book and marriage certificate (if single, the civil affairs department shall issue a single certificate);

2. The original and copy of "House Ownership Certificate" and "State-owned Land Use Certificate";

3. The original "Loan Mortgage Contract" and a copy of the "Commercial (Economic) House Purchase and Sale Contract" or the "Existing House Purchase and Sale Contract";

4. The repayment record and deadline for transfer of the original commercial loan Proof of the original commercial loan balance and remaining period on the provident fund loan application date;

5. The owner of the property rights of the house issues a notarized confirmation letter agreeing to the mortgage;

6 , a copy of the mortgage certificate or other property rights certificate with the official seal of the bank;

7. Other information.

(2) Accept the loan application and conduct preliminary review

Bank staff will interview the borrower and carefully review the authenticity, completeness, validity and completion of the loan application materials submitted. Standardization to ensure that the applicant's signature on various documents is authentic and valid.

1. With my consent, bank staff will inquire and print the "Personal Credit Report" of the re-lender and the spouse to investigate and understand their credit status; such as If there is a bad credit record but meets the credit review standards of the management center, the party concerned must sign a guarantee promising to repay the loan on time;

2. Bank staff will review the original documents related to the loan to provident fund. After passing the preliminary review of the loan, print the loan approval information confirmation form, sign the preliminary review opinions and stamp the official seal of the bank; if the provident fund information system fails the preliminary review, the re-lender should be notified in a timely manner and the reasons should be informed.

(3) For loans transferred to provident fund that have passed the preliminary review, bank staff will notify the transferor to go to the guarantee company to handle the guarantee procedures with the following information.

(4) The re-lender signs a "Loan Contract" and a "Mortgage Contract" with the lending bank based on the "Phase Guarantee Letter" issued by the guarantee company, and at the same time transfers the balance of the provident fund loan (the original commercial loan The difference between the balance and the amount of the provident fund loan) will be replenished to the bank savings repayment account agreed upon by the original commercial loan (hereinafter referred to as the "pre-deposited balance fund").

(5) Entry of mortgage guarantee information

The lending bank shall enter the mortgage, guarantee, and pre-deposited balance funds of the re-lender in the housing provident fund information management system (hereinafter referred to as the "provident fund system") Information.

(6) Bank Review

The trustee bank review personnel shall review the full set of loan information provided and filled out by the re-lender in accordance with the management center’s transfer to provident fund loan policy. Review the correctness and completeness of the data, review the completeness, accuracy, and standardization of the loan information procedures handled by bank staff, check the loan information in the provident fund system, and provide review opinions.

(7) The management center conducts the final review

The final review personnel of the management center conduct the final review of the information submitted by the trustee bank in accordance with the policy of converting commercial loans to provident fund loans. The loan information is required to be complete, the procedures are complete and compliant, and the information filled in is accurate. , paste in a standardized format, and check the loan information in the provident fund system. For loan information that fails to pass the review, the review personnel of the trustee bank should be notified in a timely manner, and the reason for the return should be informed in the provident fund system and the relevant columns of the loan approval information confirmation form. A brief explanation will be given; for the loan information that has been approved, the final review of the loan will be carried out. At the same time, a disbursement notice will be printed in the provident fund system and stamped with a special seal for loan approval, and the loan information will be returned to the trustee bank to handle the loan issuance.

(8) The lending bank issues the loan

After the final approval of the loan, the trustee bank will issue the loan funds based on the loan notice issued by the management center, and transfer the loan funds to provident fund and the pre-deposited difference funds to the original provident fund. In the commercial loan account, settle the original commercial loan and promptly notify the re-lender.

(9) The lending bank shall cooperate with the guarantee company to handle the cancellation of the original commercial loan by the real estate management department within 7 working days after the loan is issued. The housing mortgage registration shall be completed and the housing mortgage registration procedures for transfer to provident fund loans shall be completed.

(10) The guarantee company shall hand over the completed "House Other Title Certificate" to the lending bank for collection and custody within 45 working days. .

The process of converting a business to a public company is not as troublesome as it seems. In fact, it mainly involves submitting documents, interviewing, applying for guarantee and making up the difference.

The amount of a commercial loan converted to provident fund loan:

The policy stipulates that the amount of the loan converted to provident fund cannot be higher than the balance of the original commercial loan (taken as an integer above one thousand yuan), and cannot exceed the provident fund loan The maximum limit is that for a single house in the primary market with a construction area of ??90 square meters or less, the maximum proportion of the provident fund loan cannot exceed 80% of the total original purchase contract price of the house; for a house with a construction area of ??90 square meters or more, the other The maximum proportion of the loan transferred to provident fund cannot exceed 70% of the total price of the original purchase contract of the house.

The formula for calculating the loan amount is: the sum of the monthly salary income of the refinancing borrower and the couple’s housing provident fund × 12 months × 35% × loan term.

Note: The difference between the approved amount of the loan to provident fund and the balance of the original commercial loan shall be settled by the borrower of the loan with its own funds. Although the difference may not be large, it is still recommended that the borrower calculate the difference in advance to prepare for the transfer of business to public.

The period of the commercial loan to provident fund loan:

There are three standards for the loan period, and the minimum of the three standards is the period.

1. The term of the first-hand housing to provident fund loan shall not exceed 30 years;

2. The term of the loan to provident fund shall not exceed 5 years after the borrower's legal retirement age, that is: 65 for male employees Years old, female employees are 60 years old, and the loan term is calculated based on the full year of their actual age;

3. The term of the loan converted to provident fund shall not be longer than the remaining term of the original commercial loan.

Interest rates for commercial loans converted to provident fund loans:

The interest rates for converted provident fund loans are based on the interest rate standards stipulated by the People's Bank of China. However, it should be noted that if the People's Bank of China adjusts the loan interest rate during the loan period, the contract interest rate will be applied if the loan period is within 1 year (including 1 year), and the interest will not be calculated in installments; if the loan period is more than 1 year, the interest rate will be within the current year. No adjustment will be made. The specific adjustment time is January 1 of the next year and will be adjusted according to the corresponding interest rate grade.

Note: The interest rates of commercial loans converted to provident fund loans in many cities follow the principle of "recognize the house but not the loan", that is, the commercial loans converted to provident fund loans for the first home are calculated based on the benchmark interest rate; Commercial loans converted to provident fund loans are calculated at 1.1 times the base interest rate.

The processing time for converting commercial loans to provident fund loans

The processing time for converting commercial loans to provident fund loans is 9 working days. Counting from the day when the materials are submitted, the trustee bank will complete the entry of the bank's internal approval application materials within 5 working days and notify the re-lender to go to the guarantee company to handle the guarantee procedures. The trustee bank will complete the review and submit the complete set of information to the management center within 2 working days after receiving the guarantee letter issued by the guarantee company. The management center will complete the loan approval and disbursement procedures within 2 working days after receiving the information. So it is very quick and convenient to apply.

Borrowers should be clear about the entire process of converting commercial loans to provident fund loans, so as to avoid unnecessary misunderstandings. The processing of business-to-public transfers is mainly concentrated in banks and provident fund centers, so the editor reminds borrowers to carefully select agent banks and agents.

(The above answer was published on 2015-12-22, please refer to the actual relevant current house purchase policies)

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