Over 30 regions nationwide have adjusted and optimized housing provident fund loan policies to support more housing consumption scenarios.

Source: Securities Daily Author: Chen Xiao

The adjustment policies for housing provident fund loans are key tools for optimizing local policies and promoting housing consumption. According to incomplete statistics from the China Index Academy, more than 30 regions across the country have adjusted and optimized their provident fund loan policies since the beginning of this year. From the policy content, this round of adjustments features increased loan support, expanded consumption scenarios, and enhanced family mutual aid functions.

Specifically, many cities have raised the maximum loan amounts for provident fund loans. For example, Chengdu plans to moderately increase the maximum housing provident fund loan limit, raising the maximum loan for individual depositors from 600,000 yuan to 800,000 yuan, and for joint depositors from 1 million yuan to 1.2 million yuan. For new homes sold as existing properties, the maximum loan limit will be increased by 20%. Shanghai has raised the maximum provident fund loan for families purchasing their first home from 1.6 million yuan to 2.4 million yuan. Additionally, policies allowing higher loan amounts for families with multiple children and those purchasing green buildings (up to 35% increase) mean that the maximum family loan can reach 3.24 million yuan.

Chengdu has introduced a new policy scenario—homes included in city renewal projects allow homeowners to apply for the withdrawal of their and their spouse’s housing provident funds to cover renovation costs.

Fuzhou’s housing provident fund policy has been further optimized with a new renovation withdrawal policy—depositors who purchase a primary residence within the city and have held valid proof of purchase for at least 6 months and within 5 years can withdraw their provident fund in a lump sum for renovation. The withdrawal standard is 1,500 yuan per square meter. The scope of eligible home purchases has also expanded from “within the city administrative area” to “within Fujian Province,” and parents of spouses can now participate in withdrawals, better leveraging family cooperation in home buying.

Additionally, many regions support withdrawals from the provident fund to subsidize property management fees, support withdrawals for special maintenance funds, and pay deed taxes.

“Currently, many places are increasing the maximum loan amounts, supporting withdrawals for down payments, taxes, renovations, and other purposes, which can effectively lower residents’ homeownership thresholds and costs, thereby stimulating housing demand,” said a relevant person from the China Index Academy.

Regarding loan costs, housing provident fund loans still have certain advantages. Data from the China Index Academy shows that the current interest rate for first-time home loans over five years is 2.6%, compared to approximately 3.06% for new commercial personal housing loans nationwide in Q4 2025.

Industry experts believe that, as the real estate market evolves, there is still room for further optimization of the housing provident fund system.

Yan Yuejin, Deputy Director of the E-House Research Institute in Shanghai, told Securities Daily that deepening reforms of the provident fund system hinges on unblocking the capital circulation mechanism. On one hand, it is necessary to continuously expand the coverage of contributions, including new residents and flexible employment groups, by improving mechanisms for flexible employment contributions to ensure a more stable source of funds. On the other hand, efforts should be made to improve the efficiency of fund utilization, such as optimizing loan services and simplifying withdrawal procedures for renting, renovations, and old community upgrades.

Yan Yuejin further suggested that big data and artificial intelligence technologies could be used to analyze housing needs of different groups, guiding provident fund funds more precisely toward genuine demand groups.

A relevant person from the China Index Academy stated that by 2026, provident fund policies are expected to become more detailed, with flexible adjustments to contribution policies (expanding coverage) and improvements in fund utilization efficiency likely to be key focuses, further enhancing the role of the provident fund in benefiting people’s livelihoods and stabilizing the market.

(Edited by: Wen Jing)

Keywords: Housing Provident Fund Loan