Shanghai: Adjusting the longest loan term for purchasing existing housing using the city's housing provident fund, to be implemented from October 7th.

On September 7, the 69th plenary meeting of the Shanghai Housing Provident Fund Management Committee approved the "Notice on Adjusting the Maximum Loan Term for the Purchase of Existing Housing with Housing Provident Fund" and the "Notice on the Relevant Policies of the Housing Provident Fund to Support Urban Renewal". The "Notice" specifies the adjustment of the maximum loan term for housing provident fund for borrowers purchasing existing housing with a housing age between 6 (inclusive) and 35 years. Among them, for existing housing with a housing age between 6 (inclusive) and 20 years, the maximum loan term for housing provident fund will be adjusted from the original calculation rule of "35 minus housing age" to not exceeding 30 years; for existing housing with a housing age between 20 (inclusive) and 35 years, the maximum loan term for housing provident fund will be adjusted from the original 15 years to not exceeding "50 minus housing age". The original text is as follows: [Housing Provident Fund] The city promulgates policies to support urban renewal with housing provident fund In order to support the deepening of organic urban renewal, and further enhance the role of the housing provident fund in improving residents' living quality and improving their living conditions, the 69th plenary meeting of the Shanghai Housing Provident Fund Management Committee approved the "Notice on Adjusting the Maximum Loan Term for the Purchase of Existing Housing with Housing Provident Fund" and the "Notice on the Relevant Policies of the Housing Provident Fund to Support Urban Renewal". The "Notice on Adjusting the Maximum Loan Term for the Purchase of Existing Housing with Housing Provident Fund" clearly stipulates the adjustment of the maximum loan term for housing provident fund for borrowers purchasing existing housing with a housing age between 6 (inclusive) and 35 years. Among them, for existing housing with a housing age between 6 (inclusive) and 20 years, the maximum loan term for housing provident fund will be adjusted from the original calculation rule of "35 minus housing age" to not exceeding 30 years; for existing housing with a housing age between 20 (inclusive) and 35 years, the maximum loan term for housing provident fund will be adjusted from the original 15 years to not exceeding "50 minus housing age". The "Notice on the Relevant Policies of the Housing Provident Fund to Support Urban Renewal" clearly stipulates the implementation of housing provident fund support policies for old housing renovation projects included in the scope of urban renewal in this city, mainly including three aspects: First, support the withdrawal of housing provident fund for the purchase of renovated housing. Owners (property owners or public housing tenants, the same below) who purchase renovated houses with transaction conditions can withdraw housing provident fund to pay the actual purchase price. Second, support the withdrawal of housing provident fund for rent during the project construction period. Owners who temporarily rent housing during the project construction period can withdraw housing provident fund to pay the rent after deducting the transition fee subsidy. Third, expand the range of applicants for withdrawal. The range of applicants includes the owner himself, his spouse, parents, and children. If the applicant is a borrower, spouse, or co-borrower of housing provident fund loans in this city, they must meet the current requirements of no overdue loans. This policy adjustment will officially take effect from October 7, 2023.