On August 18th, the State Council officially released the Decision of the State Council on Amending the Regulations on the Administration of Housing Provident Funds. The revised regulations will take effect on September 20th. This marks the third major revision since the regulations were first introduced in 1999, covering nearly 180 million contributors with over 10 trillion yuan in total fund balances. By expanding withdrawal scenarios, broadening contributor eligibility and streamlining administrative procedures, the reform transforms the housing provident fund from a home-purchase-only instrument into an inclusive security mechanism covering the full spectrum of housing consumption including renting, renovation and property fees.
The biggest highlight of the revision lies in the substantially expanded scope of fund withdrawals. The new rules scrap the requirement that rent must account for a certain share of household income to qualify for fund withdrawal, greatly lowering the threshold for rental housing withdrawals. Rent payment tops the nine eligible withdrawal categories. Two new withdrawal scenarios are added: renovation of owner-occupied homes and payment of property management fees for self-owned housing. The total number of eligible withdrawal categories rises from six to nine, unlocking funds in provident fund accounts to support residents’ housing upgrades and routine housing expenses.
The system now covers more people, including flexible workers. Over 200 million flexible workers such as self-employed individuals, food delivery riders and freelancers may voluntarily contribute to the housing provident fund and enjoy the same low-interest loan benefits. This breaks the traditional boundary limiting fund participation solely to formally employed staff and adapts to the evolving employment landscape.
Cross-city services become more accessible. The new regulations stipulate nationwide mutual recognition of housing provident fund contribution records, simplifying cross-region fund transfer and cross-city loan applications. Full inter-city services are available across the Yangtze River Delta, while Sichuan-Chongqing cross-provincial housing loans have yielded notable results, removing barriers for workers relocating and buying homes in other cities.
Mortgage approval speeds up for homebuyers. The review period for housing provident fund loans is shortened from 15 working days to 10 working days, cutting waiting time for property purchasers. Existing provident fund loans adopted new interest rates starting January this year. For a 1 million-yuan loan over a 30-year term, monthly repayments drop and total interest costs decrease, easing monthly debt burdens for existing homeowners.
Industry experts note the core logic behind the housing fund reform. Aligned with the new phase of housing development, the system shifts its focus from mainly supporting home purchases to promoting the “rental and purchase parallel” housing model, catering to diverse demands including renting, old-home maintenance and residential upgrades. On one hand, it unlocks idle funds to reduce residents’ housing costs and boost housing-related consumption. On the other hand, it incorporates massive numbers of flexible workers into the housing security system and expands coverage of housing safeguards.
Meanwhile, the new rules strengthen risk control over fund capital and establish a credit record system for housing provident funds. Clear legal penalties are specified for fraudulently withdrawing or borrowing fund money with forged documents, guarding fund security while expanding usage scenarios.
Following this major revision, the housing provident fund system becomes markedly more inclusive and user-friendly, with policy dividends to be gradually delivered. Local supporting implementation rules are being formulated. Contributors may follow notices from local housing provident fund centers for region-specific implementation details.