Beijing has recently declared that it will test housing loans for seniors 60 and older. As such, elders could buy homes with a minimum 35% down payment. Their children can apply for the loan together. The action, nevertheless, caused controversy.

According to China Securities Times, this pilot plan would relax home buying requirements for some elderly families with difficulty in buying homes.

Three sites in Beijing have been chosen for this pilot plan.

Downtown senior families who are 60 years of age or older will receive some discounts on properties in these projects. Among them, if there is no home in the name of the senior family and there is no loan in transit, the down payment percentage will be set at a minimum of 35%. The corresponding preferential interest rate of the loan will be applied. In addition, at the same time, children can also apply for loans as co-borrowers. 

What’s wrong with this plan?

According to industry analysts, this strategy has only a minimal effect. 

There are only 3,000 houses available, making up 3% of the annual supply. The policy’s central component—for which a select few people qualify—is the relocation of the elderly from the city center.

Chinese residents are also questioning this new real estate plan on social media.

On Twitter, some users mockingly said that this amounted to “digging the ground three feet to knock the bone and drain the marrow.” They imply that successive generations of families will be held responsible for paying the heavy mortgage debt. 

Others said that this is because they could not make much money from the youth, so they changed their target to older people. 

Some netizens said bluntly: 

“Eat dry and squeeze it out. The pension will not be spared.” 

“This is the case of not even spare coffin money!”

“Let go of the old man, it’s not easy for them to save some pension.” 

One said:

“In these years, the government’s policy has changed, and the bank’s credit has been overdrawn. Who would dare to buy a house during this period?”

Others commented on the point that “children can jointly apply for a loan”: 

“The point is that the children repay the loan together. This is a housing slave economy!” 

“This is to tie the whole family to the house.”

“Relay loans are passed down from generation to generation.” 

“Five loans are in the same family!” 

“The last loan is for the last generation to repay.”

 “It’s really unscrupulous to sell the house at any price. The son could not pay it off then the grandson would do”.

Some complained about the rising cost of living:

“The cost of living for the children has gone up again. Still want us to have three children? Still getting married? Still having babies?”

Sign up to receive our latest news!

By submitting this form, I agree to the terms.