Shenzhen eases housing loan policy

The Shenzhen government will ease its policy on housing provident fund loans in a bid to revive the property market.

The maximum amount of mortgage loans that individuals can apply with their provident fund will be raised by 20 percent to 600,000 yuan (HK$644,174), and the ceiling for families will be up by 22.2 percent to 1.1 million yuan. Buyers can apply to borrow 40 percent more with the fund when they purchase their first home in Shenzhen, up from 20 percent.

Families who have two or more children will get a 50 percent rise in the maximum limit, compared to 10 percent at present.

The upward adjustment percentages can be cumulative if buyers meet multiple criteria at the same time, with a maximum rise of 110 percent.

This means the maximum loan amount can reach 1.26 million yuan for individuals and 2.31 million yuan for families.

The changes take effect on March 24.

Staff reporter