Is it an early repayment to transfer a commercial loan to a provident fund?

Converting commercial loans into provident fund is not prepayment. Commercial loans are converted into provident fund in the form of first repayment and then loan. After the approval of commercial loans, the commercial loans should be repaid first and then mortgaged.

Repaying the loan first means that after the borrower pays off the original commercial loan (pays off all principal and interest) and cancels the mortgage, the house mortgaged by the original commercial loan is used as the mortgage guarantee of the commercial loan, and the personal housing provident fund loan is issued after approval by the center.

The borrower shall complete the prepayment of the original commercial loan, cancellation of the original mortgage registration and other related procedures within three months. If it is more than three months, the original examination and approval procedures will be invalid.

Process of transferring commercial loans to provident fund

1, consulting application

Contact the bank account manager of the original commercial loan, and generally tell you to contact the queue and other notices.

2. Submit relevant materials

Identity card, real estate license, marriage certificate or single certificate, household registration book, commercial loan contract, real estate appraisal certificate, repayment bank card. After checking, the account manager will ask you to fill out a bunch of forms and sign and stamp them.

3. Data submission for review

The lending bank shall review all the information of the sub-lending borrower and report it to the local capital center for approval.

Step 4 sign a contract

After being approved by the local capital center, the lending bank signs a provident fund loan contract and a mortgage contract with the sub-loan borrower, and the sub-loan borrower signs a guarantee contract with the guarantee company.

5. Fund advance deposit

Lending borrowers need to settle the difference between the provident fund loan and the original commercial loan balance before issuing the provident fund loan and deposit it in the deposit account of the original commercial loan bank.

Step 6 change insurance

Re-loan borrowers with the original commercial loan insurance policy to the insurance company to change home insurance procedures, insurance beneficiaries from the original loan bank to the local capital center.

7. Transfer of funds

The local capital center allocates loan funds, and the loan bank notifies the loan borrower at the same time as issuing provident fund loans and settling the original commercial loans.

8. Monthly repayment

The reloan borrower shall repay the loan on time every month from the month following the settlement of the original commercial loan until the loan is fully paid off.

9. Settle the loan

When the borrower settles the last loan, I shall personally go to the loan bank and go through the repayment settlement procedures at the counter.

10, cancel mortgage

After the borrower repays all the loan principal and interest, he should go through the mortgage registration cancellation formalities with the original real estate mortgage registration department with the settlement certificate, mortgage cancellation certificate, original house purchase contract or real estate license and personal ID card issued by the loan bank.