If you need a loan to buy your first home, use a housing provident fund loan (住房公积金贷款) first, add a commercial loan to make a combined loan if the limit is not enough, and don't go all commercial
- High value
- Evidence A
- Saves money
- Free
- Takes some hours
- No willpower
In plain words
For a first home, the provident fund loan rate for terms of 5 years or longer is 2.6%, while the rate on newly issued bank mortgages in June 2026 is about 3.1%. On a loan of 1,000,000 (100万) CNY over 30 years, using only the provident fund costs about 96,000 (9.6万) CNY less in interest than using only a commercial loan. There is a cap on how much the provident fund will lend. If it is not enough, you cover the rest with a commercial loan, which is called a combined loan (组合贷).
Mentioned in
Translated from the Chinese original. Original book, section 15, tip 16. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer