The Detailed Implementation Rules for the Conversion of Personal Commercial Housing Loans to the Housing Provident Fund Combined Personal Housing Loans has taken effect on December 22nd. As learned from the Zhuhai Municipal Housing Provident Fund Management Center on December 23rd, the city’s first such loan conversion was efficiently processed through multi-party collaboration on the very day the new rules came into force. This loan conversion service was handled by Zhuhai Branch of China Minsheng Bank, enabling the eligible housing provident fund contributor to cut 232 RMB in monthly interest payments.
It is understood that Zhuhai’s newly launched policy on the conversion of commercial housing loans to provident fund loans is an innovative measure to further deepen the reform of streamlining administration, delegating power, improving regulation and optimizing services, give full play to the housing security support role of the provident fund, and deliver tangible benefits to the public. Compared with the traditional model, the newly introduced subsequent mortgage mechanism allows the Zhuhai Municipal Housing Provident Fund Management Center to be added as the second mortgagee of the property, with the original commercial bank remaining the primary mortgagee. Under this mechanism, the Fund Management Center directly disburses the approved loan funds to a designated supervised account of the original commercial bank to settle the borrower’s outstanding commercial housing loan in advance.
Thanks to the efficient coordination among three parties—the Zhuhai Municipal Housing Provident Fund Management Center, the Zhuhai Municipal Real Estate Registration Center and partner banks of the provident fund business—the required application documents have been streamlined and the mortgage registration procedures optimized. Eligible contributors only need to submit their applications in one visit to complete the seamless switch from commercial housing loans to housing provident fund loans.
