Beijing has increased the ceiling of housing public accumulation fund loans to 1.2 million yuan (US$193,000) from 800,000 yuan, Xinhua news agency reported.
First-home buyers who acquire a property not exceeding 90 square meters can apply for as much as 1.2 million yuan from Jan. 1, the report said, citing local fund administrators. For second-home buyers, the upper limit is still 800,000 yuan.
The 1.2 million yuan Beijing ceiling is currently the highest in China, the report said, noting that the move came amid a stagnant housing market.
In the capital city, a 100-square-meter apartment can cost more than 3 million yuan, Xinhua noted.
The housing public accumulation fund consists of long-term housing savings deposited by both employers and workers every month. It can only be used for workers to purchase a house and, if unused, is returned to workers when they leave office or retire.
The current interest rate for housing public accumulation fund loans over five years is 4.25 percent, compared with 6.15 percent offered by commercial banks.
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