Shanghai's public housing fund center quietly rolled out more preferential policies for home buyers seeking mortgage loans in order not to kindle direct competition with commercial banks.

Buyers of three new developments and all second-hand homes in Pudong New Area were the first batch of beneficiaries from the new policy. It allows them to apply for an additional loan of 1,000 yuan (US$125) per square meter to decorate.

However, home buyers did not know about the additional loan until three developers advertised apartments at a housing exhibition held during the May holiday.

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