Shanghai has recently suspended provident fund renovation loans. In Beijing, provident fund loans can only be applied for when purchasing a second-hand house or a new home. Provident funds can be withdrawn for renting or major repairs and reconstruction of self-occupied housing, but not for renovations, as neither loans nor withdrawals are allowed for this purpose.
According to the Shanghai Housing Provident Fund Management Center, since November 11, Shanghai has suspended the processing of housing provident fund renovation loans in order to rectify the order of the provident fund renovation loan business.
It is understood that the interest rate for Shanghai's housing provident fund loans and renovation loans is 3.33% for terms of less than five years and 3.87% for more than five years, which is lower than commercial mortgage rates. Recently, the Shanghai Housing Provident Fund Management Center found that some real estate intermediaries and individuals were applying for provident fund renovation loans under false pretenses, filling out fake application materials, and charging "intermediary service fees" of 3000 to 5000 yuan per provident fund renovation loan, disrupting market order.
Relevant officials stated that there is no "timeline" for the resumption of applications for provident fund renovation loans, and citizens are advised not to trust "agency" promises.
It was also learned that Shanghai has stopped accepting applications for provident fund loans for the purchase of third homes.
Regarding Beijing, the use of housing provident funds is very clear: they can only be applied for when purchasing a second-hand house or a new home. If one wishes to withdraw provident funds from their account, it can only be used for renting or major repairs and reconstruction of self-occupied housing. Renovations do not qualify for either loans or withdrawals.
Renting and withdrawing provident funds requires providing rent invoices and must be processed through the employer. Major repairs and reconstruction of self-occupied housing are generally applicable to renovations such as those for bungalows. A relevant official from the Beijing Housing Provident Fund Management Center stated that in actual management, the latter situation is very rare. The main use of the city's provident funds remains focused on home purchase loans and rent withdrawals.
The individual loan institution Weijiaanjie expressed that the required documents for withdrawing provident funds for major house repairs in Beijing are quite extensive, making fraudulent activities almost non-existent, and there will be no cases of falsely claiming provident fund loans under the guise of renovations.
**Documents Required for Withdrawing Provident Funds for Major House Repairs:**
- Originals and copies of major repair certificates and property certificates issued by the affiliated housing management or property department.
- Originals and copies of detailed invoices for purchasing materials or fees allocated to individuals.
- Originals and copies of the ID card of the employee withdrawing the funds.
- Bank savings account number of the employee withdrawing the funds.
- For spouses withdrawing housing provident funds, in addition to the above materials, originals and copies of marriage relationship certificates and copies of the main buyer's withdrawal record form are also required.
By David Chen - December 4, 2008, 4:51 AM