PRC Public Housing Fund Mortgage Rates to Rise

China has been experiencing a housing boom that has been ongoing for decades!

Some of the reasons for this sustained development of new residential property is that many low income earners can find ways to step onto the home owner ladder

One of the leading programs that offer assistance to secure a mortgage loan is the  PHF – Public Housing Fund

China Public Housing Fund

The influential People Daily have some new breaking news about PHF – quote – Following the interest rate hike, the Ministry of Housing and Urban-Rural Development announced it would raise the Public Housing Fund mortgage rate for home buyers by a quarter of a percentage point. It will take effect this Wednesday.

The rate for loans with a maturity of five years or less under the scheme would be raised to 3 and 3 quarters of a percent. Meanwhile the rate for loans with a maturity of over five years would be raised to 4.3 percent.

The PHF as a very solid acceptance qualification this is how it works for low and medium income earners they set in place a payment gateway to pay 5 to 12 per cent of their wages into the Public Housing Fund, then by law the employer has to pay an identical amount from 5% to 12% of the employees wage to the PHF

Then one they have deposited X Yuan into the fund they will qualify for a mortgage loan so they can buy a home!

‘PHF a good system that has worked well in China since the 1990s!’

http://english.peopledaily.com.cn/90001/90778/90859/7243923.html

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