Notice on Adjustment of the Municipality’s HPF Loan Cap and Payback Period
SHGJJG No. 2 (2015)
To Shanghai Provident Fund Management Center:
In accordance with Notice on Developing HPF Home Loans (JJ No. 148[2014]), we hereby release this notice on issues pertaining to adjustment of the Municipality’s housing provident fund loan cap and payback period as follows to better bolster residents’ demand for self-occupying and improvement oriented housing and step up support to paying employees in home purchase, after deliberation and ratification by the 46th session of the municipal housing provident fund management committee:
1. Adjustment to limit of maximum loan amount
(1) As for purchase of first suite, upper mortgage limit for an individual is raised from 300,000 yuan to 500,000 yuan, and therefore upper mortgage limit for a family is changed from 600,000 yuan to one million. Meanwhile, the policy granting an additional provident fund paying employee the eligibility to borrow an extra amount of mortgage up to 100,000 yuan, namely an extra amount of mortgage up to 200,000 yuan for an additional provident fund paying employee famliy, shall remain intact.
(2) Mortgage loans for purchase of second suite improvement oriented ordinary commercial housing shall be handled by reference to the first suite policy.
(3) As for purchase of second suite improvement oriented non-ordinary commercial housing, upper mortgage limit for an individual is raised from 200,000 yuan to 400,000 yuan, and upper mortgage limit for a family changed from 400,000 yuan to 800,000 yuan. Meanwhile, the policy granting an additional provident fund paying employee the eligibility to borrow an extra amount of mortgage up to 100,000 yuan, namely an extra amount of mortgage up to 200,000 yuan for an additional provident fund paying employee famliy, shall remain intact.
2. Adjustment to payback period of provident fund mortgage loans to second-hand housing purchasers
As for a provident fund mortgage on a second-hand residential property equivalent to or less than five years old, the upper limit of 30 years on the payback period shall remain intact.
As for a provident fund mortgage on a second-hand residential property six up to nineteen years old, the upper payback period limit is set to be the difference between 35 (years) and actual lifespan of the residential property, instead of the previous 15 years.
As for a provident fund mortgage on a second-hand residential property equivalent to or over 20 years old, the payback period must not exceed 15 years.
3. The Notice shall be effective as of 15 April 2015. Provided that any contradiction between the existing regulations and what is specified in this Notice arises, the Notice shall prevail.
Shanghai Housing Provident Fund Management Committee
8 April 2015
