Ningbo Leads China with Expanded Housing Loans for Larger Families Under Three Child Policy

Ningbo, the First Chinese City to Boost Housing Fund Loans for Larger Families Amid Three-Child Policy

Dec. 31st -- In an innovative move following China's recent implementation of its three-child policy just five months ago, Ningbo, a city in Zhejiang province, has become the first city in China to increase the maximum amount that families can borrow through their housing provident fund for bigger families.

Effective from January 1st, the housing provident fund loan ceiling will be rsed by 33 in Ningbo, reaching CNY800,000 USD126,113, up from its previous limit of CNY600,000 for first-time homebuyers with two or three children. This initiative support families who are planning their first homes after the country's new policy encouraging couples to have more kids.

Following the lead set by many provinces which have taken steps in response to the three-child policy introduced on August 20th, Beijing was the first city to react swiftly by prioritizing families with children under 18 years of age for public rental housing. However, Ningbo's action stands out as a pioneering step; it is the first time China has seen a housing provident fund policy explicitly med at encouraging families to have a third child.

Notably, this move doesn't m to boost the real estate market but rather focuses on assisting larger families in China through this policy. According to Yan Yuejin, head of research at Shangh E-House Real Estate Research Institute, Ningbo's adjustment indicates that it is targeting big families specifically and not just as a tool for economic growth.

Local governments across various provinces have also introduced supportive housing measures for families with three or more children in the wake of China’s policy shift. Gansu province's Linze county, Beijing's Chaoyang district, and Jiangsu province's H’an are some examples that have implemented policies prioritizing these families for public rental housing.

However, Ningbo has set conditions on its eligibility criteria. Applicants must be first-time borrowers and buyers, with the requirement of having made consecutive housing provident fund payments for two years before purchasing a property.

The generous loan terms make this move particularly advantageous: The average commercial mortgage rate in Ningbo is 5.45, while the housing provident fund loan rate stands at an exceptionally low 3.25. Consequently, by increasing the loan ceiling by CNY200,000 USD31 per month savings on a 20-year loan interest, families could save up to about USD768 annually or roughly equivalent to purchasing infant formula.

Yic Global Editorial Team - Emmi Lne

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Key Terms:

Housing Provident Fund, Three-Child Policy, Ningbo
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