Hangzhou lifts price limit for new homes and sets minimum down payment for personal loans at 15%

On October 9, Hangzhou, located in Zhejiang Province, unveiled a set of new real estate policies designed to enhance the housing market. These regulations, announced by the Hangzhou Urban and Rural Construction Management High-Quality Promotion Leadership Group, eliminate the distinction between first-time and second-time home buyers for those purchasing homes with loans. Under the new rules, the minimum down payment for all commercial housing loans is set at 15%, and restrictions on the pricing of new homes have been lifted.

Additionally, the city has revised its housing provident fund loan policies. The maximum loan amount available to employee households looking to buy homes has been raised to 1.3 million yuan, while the minimum amount is now 200,000 yuan. For newly constructed residential buildings that meet green and low-carbon standards, or those involved in an “upgrade” exchange program, the loan amount can be increased by 20%. The policy stipulates that the down payment ratio for both first and second homes should be no less than 20%, and borrowers who have previously repaid a home loan can qualify as first-time buyers.

Furthermore, Hangzhou has removed the price cap on newly allocated residential land. This means that from the moment the notification was issued, newly designated residential land will be free of pricing limits for new commercial housing, adhering to the original contract terms.

The notification also promotes tailored strategies to boost home-buying assistance across the city’s various districts and counties. It recommends initiatives such as home purchase subsidies and housing vouchers to facilitate the “upgrade” of commercial housing, thereby supporting both essential and enhanced housing needs.

Lastly, the notification underscores the importance of enhancing coordination in real estate financing. It aims to broaden and improve the efficiency of the real estate financing “white list” while increasing loan disbursements for the listed projects.

These new regulations take effect immediately upon publication.