The interest rate for the second home loan from the housing provident fund will be increased until the principal and interest of the loan are fully repaid.

Although the Guangzhou Housing Provident Fund Management Center stipulates that the maximum loan amount for couples jointly applying for provident fund loans can reach 800,000 yuan, in reality, many citizens cannot obtain this amount. So how should the maximum loan amount each citizen can apply for be calculated? The newly issued business guide of the Guangzhou Housing Provident Fund Management Center has clarified this.

For three people borrowing together, the limit is also 800,000 yuan

Reporters learned from the newly issued housing provident fund loan business guide by the Guangzhou Housing Provident Fund Management Center that the calculation of the housing provident fund loan amount needs to be determined based on three conditions: the multiple of the balance stored in the housing provident fund account, the maximum loan limit, and the loan ratio. The smallest value calculated according to these three conditions is the highest loan amount the borrower can obtain.

At the same time, if more than two employees apply for the purchase of the same house, the maximum loan amount of the provident fund loan contract also cannot exceed 800,000 yuan.

Interest rate increase applies to the entire loan period

The Guangzhou Housing Provident Fund Management Center stated that since October 15 last year, Guangzhou has suspended the issuance of provident fund loans for families purchasing a third or more homes. Policies such as interest rate increases for second-home loans have been implemented since last month. For second-home loan applications entered into Guangzhou's housing provident fund loan management system starting from February 25 (inclusive) this year, the down payment ratio must not be less than 60%, and the loan interest rate will be executed at 1.1 times the benchmark interest rate of the same period and level.

In addition, according to relevant agreements in the "Housing Provident Fund Loan Contract", once the interest rate for the family's second home loan needs to be calculated with a 10% increase, it will apply from the start date to the date when the loan principal and interest are fully repaid, meaning it applies to the entire loan period.

Loan term shall not exceed 30 years

According to the relevant regulations on the longest term of individual housing mortgage loans of the Guangzhou Housing Provident Fund, the longest term for new building loans shall not exceed 30 years, and the longest term for second-hand building loans shall not exceed 20 years. The loan term can be extended up to 5 years after the statutory retirement age.

The provident fund center also stated that if you pay housing provident fund at the Panyu, Huadu, Zengcheng, Conghua provident fund office, you can apply for individual housing mortgage loans at the Guangzhou Housing Provident Fund Management Center. Provident fund loans cannot be applied for to purchase shops.

It is understood that currently, Construction Bank, Industrial and Commercial Bank, Agricultural Bank, Bank of Communications, China Merchants Bank, Bank of China, Minsheng Bank, Hua Xia Bank, Guangzhou Bank, Guangzhou Rural Commercial Bank, CITIC Bank, Everbright Bank, Shenzhen Development Bank, Shanghai Pudong Development Bank, Industrial Bank, Guangdong Development Bank, and China Post Savings Bank can all handle Guangzhou Housing Provident Fund loan business. Applicants can go to the branches (business outlets) of the above-mentioned banks in Guangzhou to handle and consult on provident fund loan business.