Core answer: your housing-fund loan limit = the LOWEST of three calculations (balance multiple, repayment capacity, city cap); first-home 5+ year rate is 2.6%, saving over ¥100k of interest per ¥1M borrowed vs a commercial loan.
The three limit rules
You can't just borrow what you want. Three rules each produce a number — the smallest wins:
- Balance multiple: account balance × multiple (10-20×, set by city)
- Repayment capacity: affordable payment back-solved from monthly contribution and income
- City cap: hard ceiling (first/second home, individual/family differ)
Balance multiple method
Formula: limit = account balance × city multiple
| City | Multiple | ¥30k balance yields |
|---|---|---|
| Beijing | Not balance-linked (by contribution years) | ≈¥100k per year contributed |
| Shanghai | 40× (supplementary fund separate) | ¥1.2M (capped) |
| Guangzhou | 8× | ¥240k |
| Shenzhen | 14× | ¥420k |
| Hangzhou | 15× | ¥450k |
Most tier-2 and below cities use 10-15×. Withdrawing from the fund directly cuts your loan limit — avoid withdrawals for 1-2 years before buying.
Repayment capacity method
Common formula: limit = (monthly contribution ÷ contribution rate × capacity factor − existing monthly debt) × 12 × years
Capacity factor is usually 40-50%. Example: ¥2,000/month contribution (both sides, 12% rate) implies a salary base of ≈¥8,333; at a 50% factor the affordable payment is ≈¥4,166, supporting ≈¥1.04M over 30 years at 2.6%.
City caps
| City | First home (family) | Second home (family) |
|---|---|---|
| Beijing | ¥1.2M | ¥600k |
| Shanghai | ¥1.6M (higher for multi-child) | ¥1M |
| Guangzhou | ¥1M | ¥1M |
| Shenzhen | ¥900k | ¥900k |
| Chengdu | ¥800k | ¥700k |
Caps adjust frequently — check your local fund center's latest notice.
Current fund rates
Effective 2025-05-08 (after a 0.25pp cut):
| Home | ≤5 years | >5 years |
|---|---|---|
| First | 2.1% | 2.6% |
| Second | 2.525% | 3.075% |
Example: what does a ¥30k balance get you?
Setup: Hangzhou, balance ¥30,000, contribution ¥2,000/month (both sides), 3 years continuous, first home, 30-year loan.
- Balance multiple: 30,000 × 15 = ¥450k
- Repayment capacity: ≈¥1.04M (above)
- City cap: Hangzhou first-home family ¥1M
Lowest of three: ¥450k — the balance is the bottleneck. Grow it to ¥70k and the multiple gives ¥1.05M, at which point the ¥1M cap binds instead.
Fund loan vs commercial loan
¥1M, 30 years, equal installments:
| Type | Rate | Payment | Total interest |
|---|---|---|---|
| Fund, first home | 2.6% | ≈4,003 | ≈¥441k |
| Commercial, first home (LPR−30BP) | 3.15% | ≈4,297 | ≈¥547k |
| Difference | — | saves 294/mo | saves ≈¥106k |
Over ¥100k across 30 years — that's the strategic value of the fund balance.
Common mistakes
- "Bigger balance = bigger loan": not necessarily — capacity and the city cap both constrain it.
- "One missed month doesn't matter": most cities require continuous contribution at application; a break means re-accumulating 6-12 months.
- "Renovation qualifies for a fund loan": loans cover only buying/building/rebuilding/major repair of your own home — ordinary renovation doesn't (some cities allow balance withdrawal instead).
- "Out-of-town contributions can't be used": cross-city fund loans are now widely supported — get the cross-city contribution certificate from your deposit city.