Dongguan City, Guangdong province, will allow buyers of new homes to withdraw funds from the housing provident fund to pay for down payment.
Contributors to the fund and their spouses will be allowed to withdraw from the balance of their account to pay for the down payment of their purchases of newly built homes in the city, according to a notice released by the city’s Housing Provident Fund.
The policy will first be applied to pre-sale of newly built homes, before gradually expanding to sales of finished new homes as well as second-hand homes, the notice said.
The amount to be withdrawn cannot exceed the amount of the down payment as stipulated in the contract for the home buying, it said.
