--- title: "Shanghai Optimizes Personal Housing Credit Policies, Introdues Phased Home Purchase Subsidy Policies" type: "News" locale: "en" url: "https://longbridge.com/en/news/296455587.md" description: "Shanghai optimizes real estate policies effective Aug 21, lowering second-home down payment ratios to 15% outside the outer ring road and 15% for first homes. It introduces phased subsidies: a 1% loan subsidy (max 50k RMB) for 'trade-in' purchases outside the outer ring, and a fixed 30k RMB subsidy for selling inside-ring homes. Provident fund withdrawal rules are also relaxed, expanding eligibility to completed homes and increasing withdrawal frequency." datetime: "2026-08-20T08:11:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296455587.md) - [en](https://longbridge.com/en/news/296455587.md) - [zh-HK](https://longbridge.com/zh-HK/news/296455587.md) generator: "portal-rs" --- # Shanghai Optimizes Personal Housing Credit Policies, Introdues Phased Home Purchase Subsidy Policies Shanghai Municipal Commission of Housing and Urban-Rural Development Management, Shanghai Municipal Housing Administration Bureau, Shanghai Municipal Finance Bureau, People's Bank of China Shanghai Branch, Shanghai Financial Regulatory Bureau and Shanghai Provident Fund Management Center jointly issued the "Notice on Optimizing Real Estate Policy Measures in Shanghai", which will take effect tomorrow (21 Aug). The notice proposed optimizing the down payment ratio for second-home mortgages to better support residents purchasing homes outside the outer ring road. For purchases of homes outside the outer ring road (including areas previously subject to differentiated policies), the minimum down payment ratio for commercial individual housing loans for second homes will be lowered from "not less than 20%" to "not less than 15%". Under the optimized policy, the minimum down payment ratio for first-home commercial individual housing loans in Shanghai will be uniformly set at not less than 15%. Differentiated regional policies for second-home loans will remain in place, with the minimum down payment ratio set at not less than 25% inside the outer ring road and not less than 15% outside the outer ring road (including all areas of Baoshan and Jiading districts). In addition, Shanghai will implement a home purchase loan subsidy under the "trade-in" scheme. From the implementation date of the notice until 31 Mar 2027, resident households purchasing newly built commercial homes outside the outer ring road in Shanghai and completing online contract filing, while also selling second-hand homes in Shanghai within one year before or after the filing date, may apply for subsidies at the real estate transaction center in the district where the new home is purchased. The subsidy amount will be calculated at 1% of the total home loan amount for the newly purchased commercial home, with a maximum subsidy of RMB50,000 per unit. The total subsidy pool will amount to RMB200 million and will end once fully utilized. Meanwhile, Shanghai will optimize the "trade-in" subsidy policy introduced under the "Shanghai Nine Measures" in May 2024. From the implementation date of the notice until 31 Mar 2027, resident households purchasing newly built commercial homes outside the outer ring road in Shanghai and completing online contract filing, while selling second-hand homes inside the outer ring road within one year before or after the filing date, may apply for a subsidy of RMB30,000 at the district real estate transaction center where the new home is purchased. Resident households that also meet the criteria for the above home purchase loan subsidy and sell second-hand homes located inside the outer ring road may enjoy both subsidies simultaneously, with a maximum combined subsidy of RMB80,000. Regarding housing provident fund withdrawal policies, Shanghai will expand the scope of provident fund withdrawals for down payment purposes. Building on the "Shanghai Six Measures" introduced in Aug 2025, which supported contributors in using housing provident funds to pay down payments for newly built pre-sale commercial homes in Shanghai, the city will further expand the scope to include newly built completed commercial homes. At the same time, Shanghai will continue to support the simultaneous withdrawal and loan arrangement, whereby contributors' provident fund loan quotas will not be affected after withdrawing funds for down payment purposes. Shanghai will also optimize the frequency and limits for provident fund withdrawals related to home purchases. For contributors who have purchased homes in Shanghai and do not have provident fund individual housing loans or have not handled provident fund repayment offset services, the city will further relax the withdrawal frequency and amount. The withdrawal frequency will be adjusted from "once within five years from the issuance date of the property ownership certificate" to "once every calendar year". The withdrawal amount cap will also be relaxed to "not exceeding the portion of the home purchase price paid with self-owned funds".(jl/u) ### Related Stocks - [159707.CN](https://longbridge.com/en/quote/159707.CN.md) - [515060.CN](https://longbridge.com/en/quote/515060.CN.md) - [512200.CN](https://longbridge.com/en/quote/512200.CN.md) - [159940.CN](https://longbridge.com/en/quote/159940.CN.md) - [159768.CN](https://longbridge.com/en/quote/159768.CN.md) ## Related News & Research - [China's Shanghai eases housing policies to spur demand](https://longbridge.com/en/news/296437363.md) - [Two New Housing Projects in Shanghai's Suburbs Sell Out on First Day](https://longbridge.com/en/news/296337853.md) - [Under-eye patches aren’t just skincare anymore. 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