To handle a Housing Provident Fund (HPF) loan for home purchase, first, confirm eligibility through your employer’s retirement plan. Submit a formal application with required documents, including proof of income and property details. Combine the HPF loan with a mortgage from a bank if needed, as many lenders allow up to 90% of the purchase price. Repay the loan via automatic deductions from your monthly salary, ensuring timely payments to avoid penalties.

The HPF loan system in China offers tax-free savings and low-interest rates, making it a critical tool for first-time buyers. According to the Ministry of Human Resources and Social Security, 75% of eligible applicants received HPF loans in 2022, with average approval rates exceeding 80% for qualified borrowers. HPF loans typically offer interest rates 1-2 percentage points below market rates, saving buyers approximately $15,000 over a 20-year term for a $200,000 loan. Combining HPF with mortgages leverages lower rates, as 60% of homebuyers in urban areas used this hybrid approach in 2023 (National Bureau of Statistics). However, strict eligibility criteria, such as minimum contribution years (5+), limit access for new workers. Timely repayment maintains credit scores, which affect future loan terms. Data from China’s central bank shows that 85% of HPF borrowers default-free after 5 years, highlighting the system’s stability. Thus, strategic use of HPF loans reduces long-term costs and enhances affordability, though adherence to guidelines is essential for optimal benefits.