Government Clarifies Home Loan Program for Young Adults Should Not be Linked to Speculative Investment in Housing Market

Reported 7 months ago

The Ministry of Finance introduced the 'Youth Secure Home Purchase Loan' program to assist families without their own homes in purchasing residential properties, but it has been accused of fueling the surge in domestic housing prices. The Ministry clarified that the program is specifically for those who do not own a home and should not be confused with commercial real estate deals. Despite concerns of overheating the housing market, the government emphasized that the policy aims to support young people without homes in buying properties and has urged state-owned banks to enforce post-loan management. Various improvements have been made to the loan conditions, including raising the maximum loan amount to 10 million yuan, extending the loan period to 40 years, and lowering the interest rate to 1.775%. Discussions are underway to address improper use of the program and ensure compliance with the loan policy's objectives.

Source: YAHOO

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