Gongjijin Arbitrage: Your Boss Helps Pay for Your House, Are You Using It Right?

In China, the Housing Provident Fund (Gongjijin) is the most invisible wealth for every office worker. Every month, you and your company contribute a portion, which lies sleeping in a special account.

Many people only know how to use the monthly Gongjijin to deduct the monthly payment, but that is just the most basic usage.

The Problem: Sleeping Low-Interest Funds

Gongjijin loan rates are extremely low (e.g., 3.1%), while commercial loan rates are usually higher (e.g., 4.2% or higher).

If you have a "combined loan," your debt structure has a part of cheap money and a part of expensive money.

If you have accumulated a large balance in your Gongjijin account (e.g., due to job changes or not using it before), this money only yields about 1.5% annually. This is far lower than the interest cost of your commercial loan.

The Pain Point: Loss of Spread

Letting funds with a 1.5% return sit in the account while you pay 4.2% interest on a commercial loan is a huge waste.

Every 10,000 yuan of idle Gongjijin is losing you hundreds of yuan in spread every year.

The Solution: Gongjijin "Annual Offset" vs. "Monthly Offset"

If you have a commercial loan balance:

1. Do not just do the monthly offset (extracting just enough to cover the monthly payment).
2. Do an "Annual Offset" or Lump Sum Extraction: Use the accumulated balance in the account to make a large principal repayment on the commercial loan.

Prioritize repaying the commercial loan part, keeping the Gongjijin loan part. This is the most basic arbitrage logic: replace high-cost liabilities (commercial loan) with low-yield assets (Gongjijin balance).

📱 Amorti Simulation Demo

See the effect of extracting Gongjijin to pay off the commercial loan.

1. Open AmortiApp.
2. Enter your commercial loan part (do not enter the Gongjijin loan part, as that interest is low and there is no rush to pay it).
3. In "Extra Payments", enter the current balance of your Gongjijin account.
4. Look at the reduction in "Total Interest".

You will find that turning sleeping Gongjijin into active repayment funds can save you tens of thousands in interest.

Don't let your Gongjijin get moldy. Activate it.

Calculate Commercial Loan Interest Savings