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Developer Rejects Provident Fund Loan Reasons Revealed: Government Loaning Too Slow

Time: 2018-01-09         Source: Securities Daily - Capital Securities Net         Author: Securities Daily - Capital Securities

In today's high housing prices, the use of housing provident fund loans to buy a house has become the first choice for many home buyers to save costs, however, this move has repeatedly been rejected by real estate developers and martyrdom. In this regard, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People's Bank of China, and the Ministry of Land and Resources issued the “Notice on Safeguarding the Rights and Interests of Housing Provident Funds for Employees Purchasing Home Loans” on December 26, 2017, requiring real estate developers not to restrict them. , obstructing or refusing to purchase housing provident fund loans.

“At the end of 2017, the United Nations Development and Reform Commission of the Ministry of Housing and Urban-Rural Development conducted a comprehensive inspection of the sales of commercial housing in some key cities. During the inspection, it was discovered that the phenomenon of the opener rejecting the provident fund loans was more serious.” Director of Think Tank Research Center, Shanghai E-House Research Institute Recently, Yuejin said in an interview with the "Securities Daily" reporter that the four departments jointly issued a document to safeguard the provident fund loan policy, it can be said that it is timely and necessary, and is conducive to safeguarding the legitimate purchase rights and interests of employees deposited with the provident fund.

It is understood that the housing provident fund as a special fund to solve the problem of housing for employees, in accordance with the relevant provisions of the current regulations, the employees continue to pay the housing accumulation fund for more than 6 months (inclusive), you can apply to the housing provident fund management center personal housing loans. The current housing provident fund personal housing loan interest rate is 3.25%, far lower than the commercial bank personal housing loan interest rate. According to calculations, a single housing loan with a credit limit of RMB 1 million and a term of 20 years for individual housing provident funds can save more than RMB 200,000 in interest expenses from commercial housing personal housing loans, which can effectively reduce the burden on employees to buy houses.

However, for real estate developers, the use of provident fund loans by homebuyers is not a "good news." Zhang Bo, chief analyst of the Housing and Housing Research Institute of Housing Production, explained in an interview with the “Securities Daily” reporter recently that the main reason why developers excluded home buyers from using Provident Fund loans was mainly due to slow payment. The complex process of provident fund loans and the long loan period have directly lengthened the repayment period of the housing enterprises, resulting in a decrease in the capital turnover rate. Therefore, the pursuit of high turnover, the rapid expansion of housing prices will have a resistance to provident fund loans. In addition, the provident fund loans are policy loans and there is no "gray interest relationship." The development of housing enterprises often requires cooperation with banks. One of the conditions for many banks to agree to lending is that they can obtain a large number of high-quality mortgage customers. As a result, this has become one of the reasons why openers refuse to provide provident fund loans.

Zhang Bo believes that the supervisory department issued a document stressing that protecting the rights of home buyers for provident fund loans can be regarded as a continuation of a series of state-regulated real estate acts and is one of measures to ensure the stable development of the real estate market. In solving this problem, it is necessary to adhere to the concept of “given more than blocking”. That is, on the one hand, it will increase penalties for developers who refuse to provide for provident fund loans. On the other hand, it will speed up the process of simplifying the provident fund loans and shorten the time for the release of provident fund loans through the “drowning” approach.

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