Interest rate hike on Provident Fund deposit and loan

The report (reporter 翟烜 Gaochenwu) yesterday, the Ministry of Housing and Urban and rural construction issued a notice request, all localities under the October 19, 2010 "People's Bank of China to raise financial institutions renminbi deposit and lending benchmark interest rate notice" to the Housing Provident Fund deposit and loan interest rate hike.　　Just the day before, the People's bank had just raised the five-year loan interest rate at 6.14%. The notice requires that, starting from October 20, 2010, the deposit rate for personal housing provident funds carried forward in the previous year increased by 0.2%, from the current 1.71% adjustment to 1.91%. The Individual Housing Provident Fund deposit interest rate remained unchanged. Lending rates have also been raised since October 20, 2010. Among them, the rate of five-year (including five-year) and five-year personal Housing Provident Fund loan rates were raised by 0.17 and 0.18% respectively.　　The following five-year period (including five years) is adjusted from 3.33% to 3.5% and five years from 3.87% to 4.05%. According to Beijing's current maximum loan amount of 800,000, for example, loan 30, the repayment of the same principal and interest, in accordance with the previous rate, should repay 1.353 million yuan, according to the current interest rate should be 1.383 million yuan, only more than 30,000 yuan. For homebuyers, the cost increases are small.　　So even if the Provident Fund loan rate increases, the scope of its impact is very limited.　　In addition, starting from October 20, 2010, the Housing Provident Fund to support the housing construction project loan pilot City, the loan rate will be in accordance with the five-year Personal Housing Provident Fund loan rate of 10% to carry out, and with the individual Housing Provident Fund loan interest rate changes to make corresponding adjustments.　　The reporter learned that, according to the regulations, the interest rate of the Provident Fund before October 20, and the interest rate of the loan before this is carried out according to the interest rate before the adjustment, the next year will be carried out according to the new interest rate. Comparison of commercial and loan two suites Provident Fund more advantages of the capital of the financial institutions "Wai Ka," experts to the reporter calculate a sum, compared to increase interest rate after the Housing Provident Fund Loans and loan repayment amount changes.　　With a sum of 600,000, 20-year Provident Fund loan calculation, after the interest rate increase, the borrower pays more than 56.80 yuan per month, pay more than 13631.13 yuan of total interest. Experts said that interest rate after the Provident fund rates still have a clear advantage, compared with the commercial loans after the interest rate hike, Provident Fund borrowers can save about 700 yuan per month interest, save the total interest of more than 160,000 yuan.　　In addition, the Provident Fund has only one interest rate, the interest rate advantage of the Provident Fund loan will be more obvious for the clients of the two suite loan. Experts say the Provident Fund for Low-cost housing "chain House real Estate" chief analyst type builded with said, Provident Fund loans to the highest limit of 800,000, and the current high housing prices, Provident Fund loans may not be able to meet the needs of home purchase loans.　　So the Provident Fund loan is only suitable for the house price Low, huxing small first time home buyers. Note: Provident Fund loan interest rate adjustment, the borrower should pay more than 56.8 yuan, pay more total interest 13631.13 yuan, commercial Loans and Provident Fund loan adjustment, based on the commercial loan benchmark interest rate, to pay more than Provident Fund loan 695.48 Yuan per month, pay more than 166914.6 yuan total interest.