The "business-to-business" conversion of personal housing loans can effectively reduce the financial pressure on home buyers to repay loans. Recently, many places, including Wuhu in Anhui, Bengbu in Anhui, Xuzhou in Jiangsu, Ganzhou in Jiangxi, etc., have "loosened" the policy of "business to business" for housing loans.
However, provincial capitals such as Nanjing and Xi'an have not yet launched the "business-to-business" business of housing loans.
Loosening the "business to business" in many places
It is reported that "business to business" is a way for employees who have paid into the housing provident fund to convert commercial loans into provident fund loans. According to the Regulations on the Administration of Housing Provident Fund and the relevant policies of the Housing Provident Fund, "business to business" is not a business that must be carried out by the Housing Provident Fund, but an improvement service to reduce the repayment pressure of commercial loans for employees who have paid into the Housing Provident Fund.
According to a report by Dawan News on October 8, the Anhui Provincial Department of Housing and Urban-Rural Development recently replied to the suggestions put forward by the representatives of the first session of the 14th Anhui Provincial People's Congress and the intersessional period, involving many people's livelihood hotspots. It is worth noting that the Anhui Provincial Department of Housing and Urban-Rural Development guides qualified cities, such as Huaibei, Suzhou, Huainan, Chuzhou, Tongling, Anqing, Huangshan and other cities to carry out the "business to business" business, and the department will continue to guide qualified cities to actively carry out the "business to business" business of the housing provident fund.
On October 30, the Housing Provident Fund Management Center of Wuhu City, Anhui Province officially issued the "Implementation Measures for the Conversion of Commercial Personal Housing Loans into Housing Provident Fund Loans in Wuhu City", which will be officially implemented on December 1, 2023.
The conditions for "business to business" announced by the Wuhu Housing Provident Fund Management Center are:
According to the Wuhu Housing Provident Fund Management Center, there are two types of "business-to-business" loan methods to choose from. The first is the "repay first and then loan" method, which means that after the applicant applies for a "business-to-business" loan from the provident fund center and after examination and approval, the applicant settles the original commercial loan, releases the original loan mortgage, and re-handles the housing provident fund loan procedures, and the provident fund center disburses the loan funds to the bank account provided by the applicant.
The second is the method of "loan repayment", which means that the applicant applies for a "business-to-business" loan from the provident fund center and after examination and approval, and the commercial bank cooperates with the mortgage implementation procedures, the provident fund center disburses the housing provident fund loan to the designated repayment account of the commercial bank to offset the commercial loan. When citizens choose this type of loan, they need to pay special attention to the difference between the housing provident fund loan and the original commercial loan, which shall be settled in advance by the applicant with self-raised funds or apply for a portfolio loan from a commercial bank.
In Bengbu, Anhui Province, the Bengbu Housing Provident Fund Management Center has recently canceled the appointment review system for business-to-public loans. Employees who contribute to the provident fund can apply as long as they meet a few basic requirements.
In Xuzhou, Jiangsu Province, on October 16, the handling of commercial banks' personal housing loans to housing provident fund loans was resumed, that is, the "business to business" business.
Ganzhou, Jiangxi Province, has also resumed the "business-to-business" loan business in the city since October 7.
Zhejiang Jinhua's policy is more convenient. Since October 16, Jinhua City, Zhejiang Province has implemented a new policy of converting commercial personal housing loans into provident fund loans, and launched the "mortgage to loan" method for the first time to further reduce the financial burden of home buyers. According to the "Jinhua City Commercial Personal Housing Loan to Housing Provident Fund Personal Housing Loan Implementation Rules" (hereinafter referred to as the "Rules"), after the introduction of the "mortgage loan", buyers can directly apply for a provident fund loan to repay all or part of the commercial loan, and in the future, buyers do not need to raise funds to settle the commercial housing loan by themselves.
Yan Yuejin, research director of Shanghai E-House Research Institute, told the "Daily Economic News" reporter on October 15, "This policy is not only from the perspective of Zhejiang Province, but has made some innovations from the entire level of the provident fund." It should be said that this year, in terms of reducing mortgage interest rates and reducing the cost of buying houses, some major innovations have been made in the relevant policies of the provident fund. ”
Many provincial capitals have not yet opened
Some places in Jiangsu have resumed the "business-to-business" business, but Nanjing has not yet launched it, according to the Yangtze Evening News, mainly due to the high withdrawal rate of the Nanjing provident fund. According to reports, the "business to business" usually requires the borrower to use its own funds or raise bridge funds, and obtain the consent of the commercial bank, and first settle the commercial housing loan before it can be handled.
The Nanjing Provident Fund Management Center said on its official website that some cities have carried out "business-to-public" business due to the decline in loan issuance, resulting in a low utilization rate of provident fund, but set up restrictive conditions such as "first loan and first set", or the transfer of loan housing property rights within a certain period of time (such as two years). In recent years, the demand for Nanjing workers to use the provident fund to buy houses is relatively strong, and the provident fund withdrawal rate is about 80%, resulting in a relatively tight fund for issuing loans.
Industry insiders pointed out that the provident fund loan has a guarantee and mutual assistance, and its loan funds come from other unused provident fund deposits, and the formulation and implementation of relevant policies mainly protect the loan to buy the first home and improve the housing group. Nanjing Provident Fund Center said on its official website that in the future, it will further study relevant policies according to the use of collection, withdrawal and loan funds to ensure the optimization of mutual assistance of provident fund.
According to a September report by Shaanxi News, many citizens are concerned about the news of the "business-to-business" loan for personal housing in Xi'an. Recently, the Shaanxi Supervision Bureau of the State Administration of Financial Supervision and Administration issued the "Reply Letter to Recommendation No. 179 of the First Session of the 14th Provincial People's Congress". The content mentions: It is recommended that the housing management department start a "business to business" business in Xi'an. According to the investigation, Shaanxi City has basically opened the business of converting personal housing commercial loans to housing provident fund loans, but Xi'an has not opened it for the time being. According to the statistics of the Shaanxi Supervision Bureau of the State Administration of Financial Supervision and Administration, the stock of personal housing loans in Xi'an is larger, accounting for 69.13% of the province as of the end of June.
Editor|Lu Xiangyong Gai Yuanyuan
Proofreading|Cheng Peng
Daily Economic News, Comprehensive Dawan News, Every App, Yangtze Evening News, Shaanxi News
National Business Daily