China Public Housing Fund Will Expand Borrowing Nationwide

China has a housing fund, the capital for which is voluntarily paid by workers and their employers. Individuals have their own account, but funds are pooled and lent out to home buyers. Until now, a worker in Beijing would only be able to take their savings out and borrow from the fund if they were buying a Beijing home. Now, funds can be used nationwide. Additionally, the time required to pay in before an individual can borrow has been cut to 6 months.

住房公积金异地互认破冰 落地效果待观察

Housing fund consecutive days release "New Deal."

October 14, media reported that the building housing the Ministry of Finance, Central Bank jointly issued "on the development of individual housing provident fund loans notice" (the "Notice"), to relax the conditions of the loan application, the abolition of four charges, to achieve remote mutual recognition, transfer and continuation.

However, the same day the Ministry of Housing, Ministry of Finance, the central bank's official website three ministries did not publicly hung out the file. October 14th, 21st Century Business Herald reporter called the Department of Housing and Housing Fund Supervision Department to verify the above information, the Division related parties, "the Ministry of Housing is indeed a joint Ministry of Finance, the central bank issued the above documents, and subsequent local need this out operation of rules. "

At the same time, Beijing Housing Fund Center also said that the receipt of such "notice" and study the complementary ground rules.

A day earlier, the Ministry of Housing, Ministry of Finance and the Central Bank issued a joint document to cancel individual housing provident fund loan insurance, notary, new home assessments and mandatory agency guarantee fees, reduce the loan burden on workers.

Apply for housing provident fund loans currently involved in two major cost pens were assessed fees and guarantee fees. Among them, the assessment of fees in accordance with the collateral valuation 3 ‰, the maximum not more than 1500 yuan. Warranty service fee of 3% of the loan amount charged, the lowest 300 yuan.

This also means that if the loan of 100 million words, agency fees and guarantee fees need a total 4500 yuan.

"These two costs are not high proportion of the total housing fund, to cancel the release of a more expected." Real estate market research, said Zhang Dawei, director of the Central Plains.

Fund loan conditions relaxed

Under the "notice", housing accumulation fund loan application threshold is substantially lower, future continuous deposit of six months can apply for the loan fund.

"The existing housing fund must deposit 12 months to the loan." Chain of family property, principal analyst at market research department Zhang Xu believes, according to the New Deal, the housing provident fund deposit half the time, this also means that the housing accumulation fund loan application threshold reduced.

Meanwhile, the "notice" also requires that the future will be relaxed provident fund loans, such as home loan will support the first, due to increase credit lines and so on. As for how much to increase, according to the specific circumstances of the country can be delineated.

In fact, since the local market regulation policies have been loose, Guangxi, Zhejiang, Fujian, and more precisely by adjusting the housing provident fund loans, reducing the proportion of first home loans and other means to support the needs of the buyers own homes.

Big Yue, general manager of Beijing Consulting Co., Ltd. Jin Yongxiang also said to increase the loan amount, will improve utilization of housing provident fund loans.

Ministry of Housing statistics show that from 1992 to March 2014, the National Provident Fund utilization rate is only about 50%.

It is worth mentioning that the "notice" also urged all localities to achieve the mutual recognition and off-site housing provident fund deposit transfer and continuation and advance remote lending, deposit holders can prove that workers employed in the housing fund management center issued to domicile housing fund management center to apply for individual housing provident fund loans.

Wei Jia Anjie loan institutions analyst Wu Hao said, that in the future, be paid into the fund at work, home loans can be used in different places, which the national real estate market trading volume will play a facilitating role.

In Dawei seems, after the purchase of deregulation and Loan Deal, more policy also in the pipeline, its main feature is to increase housing subsidies, adjusting taxes charging policy, lower down payment requirements and other fund.

Floor effects to be seen

October 14th, 21st Century Economic Report from the Department of Housing and Housing Fund Supervision Department informed that the "notice" has been issued to place under and around the complementary rules will also be introduced in accordance with the notice.

Market research director Centaline Dawei that, in the actual implementation, local governments, and supporting the implementation of the rules, "notice" is not easy, and the role of the market remains to be seen.

Wei Jia Anjie loan institutions analyst Wu Hao believes that the limited amount of housing provident fund, provident fund loans adjustment is not too large, at least not double the increase.

Guangzhou, for example, a data center in Guangzhou City Housing Fund showed, from January to August this year, the Guangzhou Municipal Housing Fund imputation amounted to 33.824 billion yuan, 25.684 billion yuan to extract the amount already paid the amount of 15.656 billion yuan of loans, loan recovery 47.07 billion, the current housing fund balance of $ -28.09 million. As of August 2014, the balance of the calendar year imputation Guangzhou Housing Fund was 107.054 billion yuan, the loan balance of 87.938 billion yuan, deposit-loan ratio was 82.14 percent, exceeded the Guangzhou Municipal Housing Fund Management Committee set 80% cordon.

October 11, the Guangzhou Municipal Housing Fund Management Committee by the "Guangzhou City housing fund personal home loans implementation of measures" to prohibit a second loan fund and provident fund basically decided in 2015 to 14 billion yuan credit line, compared with 17 billion this year Yuan's plans to reduce 3.0 billion, a decline of 17 percent, as the "most serious fund the New Deal."

In this regard, the Guangzhou Municipal Housing Fund Center, said the purpose of the adjustment is mainly to ensure that workers paid into the fund can apply for housing fair.

Dawei analysis, although the "notice" requirement even pay six months of workers can apply for the loan fund, reducing the difficulty of using the fund, but many cities are implemented in accordance with the limited amount of provident fund deposit multiple loans, deposit amount lower The actual loan amount buyers are also very low.

The view from the offsite fund loan lenders, Dawei, as early as 2009 Beijing and Qinhuangdao and other cities have also been tried in different places fund loans, but almost no buyers choose, because the operating procedures are very complicated, but the amount is not high.

Zhang Xu said that lenders require off-site housing provident fund loans between cities with the relevant authorities, is expected in the short term will not let Beijing temporarily off-site loan application.

Favorable good Shanghai E-House Real Estate Yan Yuejin researcher also believes that the introduction of three ministries fund the purchase of the New Deal for buyers to reduce costs, improve housing affordability and so on, but the effect remains to be seen.

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