Shenzhen's new housing provident fund rules allow nationwide mortgage repayment withdrawals

Shenzhen’s revamped rules for housing provident fund (HPF) withdrawals, which took effect Monday, significantly widen when employees and their family members can draw on balances and, for the first time, allow mortgage-repayment withdrawals for loans held anywhere in China.

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Under the revised regulations, buyers in Shenzhen may withdraw HPF funds to help cover a down payment before it is fully paid. If a family owns one property, it may withdraw the full account balance; if it owns two properties, it may withdraw 60% of the account balance. In all cases the withdrawal cannot exceed the unpaid portion of the down payment, and the down-payment withdrawal may be used only once.

If an employee qualifies for both a standard purchase withdrawal and the new down-payment withdrawal, they must choose one option — both cannot be taken.

Withdrawn down-payment funds may still be counted in the HPF account balance when calculating the maximum ordinary HPF loan for that home (excluding commercial-to-HPF conversion loans). For example, an employee with a 100,000 yuan HPF balance who withdraws the full amount for a down payment may still have that 100,000 yuan counted toward loan capacity, which could imply a maximum loan of up to 1.6 million yuan under a 16x multiplier.

The Shenzhen Housing Provident Fund Management Center said applicants filing for a down-payment withdrawal in person at service counters can simultaneously submit an HPF loan application, enabling “one application, parallel processing.”

The new rules extend the application window for housing-consumption withdrawals from three years to five years. The triggering date is the issuance date on relevant receipts, invoices or tax tickets; for example, a purchase on Jan. 5, 2021, could be the subject of a withdrawal application through Jan. 5, 2026. The five-year limit applies whether the purchase occurred inside Shenzhen or elsewhere.

Buyers of first or second homes in Shenzhen may also withdraw HPF to pay deed tax and other purchase taxes, provided the tax invoice is within five years, the withdrawal does not exceed the actual tax paid, and the withdrawal is allowed once.

A major change expands mortgage-repayment withdrawals from Shenzhen-only to nationwide. Employees and their family members who are repaying principal and interest on first or second-home mortgages anywhere in China may apply to use HPF to cover those payments. If multiple mortgages exist, applicants may select only one mortgage for withdrawal in a given month.

For families with one home, the monthly withdrawal may equal the actual monthly mortgage payment. For families with two homes, the monthly withdrawal may be up to 60% of the applicable monthly HPF contribution amount, but not more than the actual mortgage payment. Mortgage-repayment withdrawals are allowed once per year; a single annual withdrawal may retrospectively claim up to the previous 24 months of unpaid eligible amounts.

Officials say the changes aim to better align HPF policy with residents’ housing needs, ease financing for home purchases — especially down payments — and provide greater flexibility for workers repaying mortgages across China. Applicants should prepare supporting documents such as purchase contracts, tax invoices and mortgage statements when applying.