After contributing to the Chongqing municipal-government pension fund for six years, Lou Wei's dream of buying a home for her parents has finally come true.
That's because the government has relaxed its rules for withdrawals from the fund, to allow members to draw on their retirement accounts to help them fund the purchase of a home.
The decision, announced last month, meant the 29-year-old director of the integrated management centre at Centaline Property in Chongqing could withdraw 15,000 yuan (HK$18,300) from her account as a down payment on a home.
Under the revised regulations, members of the government's pension fund can also borrow up to 25 times the amount accumulated in their retirement account, up from 15 times previously, to help then finance a home purchase.
The pension loan ceiling has also been doubled to 400,000 yuan for an individual, and 800,000 yuan for a family, providing that the maximum loan amount does not exceed 80 per cent of the flat purchase price.
Applicants under the loan scheme will also be required to make a down payment of at least 20 per cent of a flat's value, compared to 30 per cent for those outside the scheme.