Two departments: Extend the maximum term for personal housing loans from 30 years to a maximum of 40 years.

Recently, the People's Bank of China and the National Financial Supervision and Administration issued the "Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Development Model for Real Estate," and relevant officials from the central bank answered reporters' questions regarding related issues. The "Opinions" focus on optimizing two core systems: development loans and personal housing loans, extending the maximum term of personal housing loans from 30 years to 40 years, and enhancing the connection between personal housing loans and development loans. Specifically, the "Opinions" clarify the types of loans in niche areas such as commercial housing, affordable housing, rental housing, and commercial real estate, addressing the credit needs throughout the full lifecycle of real estate development, construction, sales, and operation. It strengthens the interconnection between different types of loans, coordinates key factors such as loan targets, terms, purposes, and mortgage rates, and constructs a comprehensive and orderly real estate credit product system. First, it establishes a lead bank system for development loans to enhance the financial service capacity for the transformation and development of the real estate industry. The "Opinions" stipulate that a single real estate project corresponds to one lead bank, which will individually or lead a syndicate to issue development loans. The term of development loans should align with the project construction and sales cycle, covering the entire process from project commencement to completion filing, with pre-sale projects having a maximum term of 5 years, completed sale projects up to 7 years, and commercial real estate projects up to 7 years, with the initial repayment date generally being after the project completion filing. Second, it strengthens the connection between personal housing loans and development loans. The "Opinions" specify that personal housing loans should be issued through a trustee payment method. For newly purchased homes that are sold as completed properties, the payments should be made to the fund account of the project company set up at the lead bank; for pre-sale properties, payments should be made to the project pre-sale fund supervision account. Third, to meet the needs of economic and social development, the "Opinions" extend the maximum term of personal housing loans from 30 years to 40 years, providing greater flexibility for both borrowers and lenders, with specific terms to be determined through negotiation between the homebuyer and the commercial bank. The original text is as follows: Notice on Issuing the "Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Development Model for Real Estate" (Yin Fa [2026] No. 171) Peoples Bank of China Shanghai Headquarters, branches in all provinces, autonomous regions, directly governed municipalities, and plan-separated cities; regulatory bureaus of the National Financial Supervision and Administration; the China Development Bank, various policy banks, state-owned commercial banks, the China Postal Savings Bank, and various joint-stock commercial banks: In order to thoroughly implement the decisions and deployments of the Party Central Committee and the State Council on constructing a new development model for real estate, improve real estate credit management, protect the legitimate rights and interests of homebuyers, meet the reasonable financing needs of the industry, and promote the steady operation of the real estate market, we are now issuing the "Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Development Model for Real Estate" to you for compliance. Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Development Model for Real Estate Chapter One General Principles Article 1 In order to improve real estate credit management, protect the legitimate rights and interests of homebuyers, meet the reasonable financing needs of the industry, promote the steady operation of the real estate market, accelerate the construction of a new development model for real estate, and promote high-quality development of real estate, these opinions are formulated in accordance with the "Peoples Bank of China Law of the People's Republic of China," "Banking Supervision and Administration Law of the People's Republic of China," "Commercial Bank Law of the People's Republic of China," and other laws and regulations. Article 2 To adapt to changes in the supply and demand relationship of the real estate market, a comprehensive, orderly real estate credit product and management system should be established to promote a virtuous financial and real estate cycle. The following principles shall be adhered to: First, adhere to a people-centered approach and promote high-quality development. Along with the reform of the commodity housing sales system, reform the personal housing loan system, optimize housing financial services, support rigid and improved housing demand, and assist in establishing a housing system with a multi-subject supply, multi-channel guarantee, and rental-purchase ergonomics. Second, adhere to coordinated planning and systematic integration. Focus on the full chain of real estate development, construction, sales, and operation, improve and optimize the real estate credit system, and systematically plan credit products across their entire lifecycle and in various subfields, achieving a reasonable overall scale, balanced structure, matched terms, and specified use. Third, adhere to institutional norms and prudent management. Improve macro-prudential management of real estate finance, strengthen forward-looking preventive measures and counter-cyclical regulation, regulate the financing behaviors of real estate-related entities, and promote the steady operation of the real estate market. Fourth, adhere to orderly development and risk prevention. Enrich real estate loan products and services, enhance risk pricing capabilities, and support industry transformation and high-quality development. Strengthen supervision and management of real estate credit business, enhance monitoring and early warning of loan quality, and prevent and mitigate real estate credit risks. Article 3 Banking financial institutions shall refine their real estate credit management mechanisms according to the requirements of these opinions, strengthen the collaborative layout of various real estate loan businesses, optimize internal and external business processes, improve whole-chain management service capabilities, and effectively prevent financial risks. Chapter Two Types of Real Estate Loans Article 4 Real estate loans referred to in these opinions are various loans issued by banking financial institutions for real estate fields such as commodity housing, affordable housing, rental housing, and commercial real estate for development, construction, sales, and operation. Article 5 Banking financial institutions shall not issue loans used to pay land transfer fees and related taxes and fees. Article 6 Banking financial institutions may issue real estate development loans during the real estate development and construction phase, including commodity housing development loans, affordable housing development loans, housing rental development construction loans, and commercial real estate development loans. Banking financial institutions shall strengthen closed management of real estate development loans to ensure that the funds are used exclusively for their intended purpose and that loan issuance matches the project construction cycle. Article 7 Banking financial institutions may issue home purchase loans during the real estate sales phase, including personal housing loans, group home purchase loans for housing rentals, and loans for purchasing commercial properties. Banking financial institutions shall strictly implement the regulations for issuing personal housing loans and effectively protect the legitimate rights and interests of homebuyers. Article 8 Banking financial institutions may issue operational loans during the real estate operation phase, including loans for operating properties and housing rental operational loans. Banking financial institutions shall diversify loan products and services based on the reasonable funding needs of the real estate operation phase and promote the enhancement of housing quality and the transformation and development of the real estate industry. Article 9 The Peoples Bank of China and the Financial Supervision Administration may establish new types of real estate loans according to economic and social development needs. Chapter Three Real Estate Development Loans Article 10 Real estate development loans refer to loans from banking financial institutions issued to qualified development enterprises for the development and construction of real estate projects (including commodity housing, affordable housing, rental housing, and commercial real estate). Article 11 For a development enterprise applying for real estate development loans, the ratio of project capital shall comply with national regulations regarding the capital system for fixed asset investment projects. Project capital must be fully in place before real estate development loans and matched with real estate development loan contributions to project construction. Article 12 Real estate development loans implement the lead bank system, where each real estate project corresponds to one bank as the lead bank (either a single lending bank or a leading bank for syndicate loans), which conducts closed management of the project funds. The project company shall open a fund account at the lead bank. During the projects existence, except for pre-sale funds and deposits regulated as required, all funds related to the project, including real estate development loans, project own funds, and completed property sale funds, must be included in the fund account opened at the lead bank. The lead bank and fund account shall not be changed before the real estate development loans are fully repaid. The projects pre-sale fund supervision account and deposit account shall be opened at the lead bank as required. Major matters affecting the financial debt security of the project company, such as external liabilities and investments, shall be informed to the lead bank in advance. Article 13 The term of real estate development loans shall match the project construction and sales cycle, covering the entire process from project commencement to completion filing. The term for pre-sale project loans shall generally not exceed 3 years, with a maximum of 5 years; for completed sale projects, the term shall generally not exceed 5 years, with a maximum of 7 years. The term for loans used for commercial real estate development shall generally not exceed 7 years. The first repayment date should generally be after the projects completion filing, and it may be repaid early if agreed upon by both parties. Banking financial institutions shall comprehensively evaluate the project construction cycle, sales method and outlook, repayment source guarantees, and reasonably determine the amount and term of real estate development loans. Article 14 Banking financial institutions issuing real estate development loans shall take project land and in-progress projects as collateral and may enhance credit in accordance with the situation through shareholder guarantees and equity pledges. Article 15 Banking financial institutions shall disburse real estate development loans in batches according to the project construction progress and risk situation, and such loans shall be disbursed through trustee payments to the account of the project's transaction parties via the fund account opened at the lead bank. Article 16 Affordable housing development loans refer to loans issued by banking financial institutions specially for supporting the development and construction of affordable housing projects that meet certain requirements. Lenders should reasonably determine the loan interest rate and repayment method based on comprehensive calculations of project overall returns and risks, combined with project construction operation cycles, repayment sources, and funding costs, based on the principle of ensuring the principal and a small profit. The loan interest rate is generally lower than that of commodity housing development loans. Article 17 Housing rental development construction loans refer to loans issued by banking financial institutions to real estate development enterprises, industrial parks, rural collective economic organizations, enterprises and institutions, etc., for the construction of rental housing that complies with laws and regulations for long-term leasing. The term for housing rental development construction loans is generally 3 years, with a maximum of 5 years. Chapter Four Home Purchase Loans Article 18 Home purchase loans refer to loans issued by banking financial institutions to individuals or legal entities for purchasing houses for residential, operational or rental purposes, including personal housing loans, commercial property purchase loans, and group home purchase loans for housing rentals. Article 19 Personal housing loans refer to loans issued by banking financial institutions to individuals for purchasing homes. Borrowers must meet the purchase conditions in the city where the housing is located. Article 20 Banking financial institutions issuing personal housing loans must comply with the minimum down payment ratio requirements. The maximum term for personal housing loans shall not exceed 40 years, and the amount must not exceed the appraised value of the intended purchased home. For loans with a term of 1 year or less (inclusive), they shall be repayable in full at maturity or repaid monthly; for loans with a term exceeding 1 year, they shall be repaid monthly. Article 21 Banking financial institutions issuing personal housing loans must focus on assessing the borrower's repayment ability, strengthen verification of the authenticity of borrower income, prudently conduct risk identification, and comply with the upper limits of the personal housing loan expenditure-to-income ratio and personal debt expenditure-to-income ratio. Article 22 For newly built homes sold as completed properties, personal housing loans should be issued after sales filing; for pre-sales, they should be issued strictly after project completion filing. Personal housing loans should be issued via trustee payments. For completed property sales, payments are to be made to the fund account of the project company opened at the lead bank; for pre-sales, payments are to be made to the projects pre-sale fund supervision account. If the purchased home is a resold property, payments should go to the account of the transaction party as agreed in the loan contract. Article 23 Banking financial institutions shall require borrowers to use the purchased home as collateral for personal housing loans. For properties for which the property right certificate or other formalities cannot be registered in time, banking financial institutions may require borrowers to carry out advance registration of the mortgage or additional other interim guarantees as appropriate. Article 24 For existing floating-rate personal housing loans, when the mortgage rate deviates significantly from the national average interest rate for newly issued personal housing loans, borrowers can negotiate with banking financial institutions to change the contracted interest rate, or apply for substituting outstanding loans with newly issued floating-rate personal housing loans. The method should be chosen by the borrower. The adjustment rate or new loan interest rate should be determined by negotiation between banking financial institutions and the borrower and shall not be lower than the minimum rate for personal housing loans in the city where the change or substitution occurs (if applicable), and the loan amount shall not exceed the remaining principal of the original loan. Banking financial institutions shall not issue housing mortgage loans with amounts fluctuating with property appraisal values or without specified purposes; for mortgaged properties, no additional purchase loans can be secured based on re-evaluated net value until all existing loans have been fully repaid. Article 25 Eligible banking financial institutions are encouraged to issue credit asset-backed securities based on personal housing loans to disperse credit risks, enhance lending capacity, and improve the marketization mechanism for real estate loan interest rates. Article 26 For borrowers of existing personal housing loans facing temporary loss of income leading to repayment difficulties, banking financial institutions may negotiate with the borrower to adopt flexible measures such as reasonably delaying repayment times, extending loan terms, or postponing principal repayments based on market-oriented and rule-of-law principles to adjust repayment plans. Article 27 Commercial property purchase loans refer to loans issued by banking financial institutions to individuals or legal entities for purchasing commercial properties (including properties for mixed-use). The commercial properties for which loans are applied must be completed and recorded. Banking financial institutions issuing commercial property purchase loans must comply with minimum down payment ratio requirements. The term for commercial property purchase loans generally does not exceed 10 years, with a maximum of 15 years. Individuals applying for commercial property purchase loans should comply with the upper limits of the personal housing loan expenditure-to-income ratio and personal debt expenditure-to-income ratios. Article 28 Housing rental group purchase loans refer to loans issued by banking financial institutions to enterprises, eligible public institutions, and specialized, large-scale housing rental companies for bulk purchasing of idle housing stocks for long-term holding and operation as affordable or commercial rental housing. The houses purchased with housing rental group purchase loans must be commodity housing or commercial properties with clear legal relationships and completed records. The rental purpose of these properties must not change during the loan period. The term for housing rental group purchase loans shall not exceed 30 years, and the loan amount shall generally not exceed 80% of the propertys appraised value. Chapter Five Operational Loans Article 29 Operational property loans refer to loans issued by banking financial institutions to enterprises holding commercial real estate with operational properties as collateral. The borrower must be a legally constituted entity that possesses completed properties, obtained property rights certificates, and has put them into operation. Commercial real estate includes but is not limited to commercial complexes, shopping centers, business centers, office buildings, hotels, and cultural tourism properties, but does not include commodity housing or rental housing. The term for operational property loans shall not exceed 15 years, and the loan amount shall generally not exceed 70% of the propertys appraised value, with the primary source of repayment coming from the operating income of the collateralized property. Article 30 Housing rental operational loans refer to loans issued by banking financial institutions to housing rental enterprises operating their own properties or compliant transformations forming non-owned rental housing for daily operations. For housing rental businesses operating their own properties, housing rental operational loans shall not exceed 20 years, and the loan amount shall generally not exceed 80% of the propertys appraised value. For housing rental enterprises transforming industrial sites, commercial properties, urban village properties, etc., into non-owned rental housing, the term for housing rental operational loans shall not exceed 5 years, and the loan amount shall generally not exceed 70% of the total receivable rent during the loan period. For rental housing projects where development and operation are carried out by the same entity, housing rental operational loans may be used to replace earlier housing rental development construction loans. Chapter Six Macro-Prudential Management of Real Estate Finance Article 31 The People's Bank of China shall implement macro control over real estate credit in accordance with the law, leading the establishment of a macro-prudential policy framework for real estate finance, working with related departments to formulate macro-prudential policies for real estate finance, and carrying out macro-prudential management. The Financial Supervision Administration shall supervise and manage the real estate loan businesses of banking financial institutions in accordance with the law. Article 32 The Peoples Bank of China, in conjunction with the Financial Supervision Administration, shall determine the national policies for minimum down payment ratios for personal housing loans and commercial property purchase loans. The People's Bank of China, along with the Financial Supervision Administration, shall implement concentrated management of real estate loans for banking financial institutions. The interest rate policy for personal housing loans shall be separately regulated by the People's Bank of China. According to market conditions, financial institutions' risk situations, and systemic financial risk statuses, the People's Bank of China, in conjunction with relevant departments, shall establish other counter-cyclical adjustment mechanisms for real estate finance. Article 33 The Peoples Bank of China shall conduct macro-prudential monitoring and assessment of the real estate credit business of banking financial institutions. Based on monitoring and assessment results, it may work with relevant departments to adjust parameters for applicable macro-prudential management tools in real estate finance. Article 34 The People's Bank of China and financial supervision departments shall reform and improve the comprehensive statistical indicator system for real estate financeincluding credit, bonds, stocks, asset management, and overseas financingbased on the needs of the new development model for real estate, and shall conduct statistical monitoring. Relevant departments shall statistically monitor real estate financing in various fields according to their responsibilities. Banking financial institutions shall optimize their statistical business processes, improve the data reporting system for real estate credit, report statistical data as required, and strengthen the quality management of the financial statistical data source; they must ensure that reported data is timely, accurate, and complete, and prevent data falsification. Chapter Seven Supplementary Provisions Article 35 The banking financial institutions referred to in these opinions mean policy banks, commercial banks, rural cooperative banks, rural credit cooperatives, and other public deposit-absorbing financial institutions established within the boundaries of the People's Republic of China. Policy developmental banks shall legally conduct real estate loan businesses within the scope of their functions and business. Article 36 These opinions shall take effect from the date of issuance. Contracts for real estate loans signed before the implementation date shall continue to be executed in accordance with the terms of the contracts. The specific business management methods for personal housing loans, commodity housing development loans, commercial real estate loans, and other areas shall be formulated under the leadership of the Financial Supervision Administration. The following notices are hereby repealed: "Notice from the People's Bank of China on Further Strengthening Real Estate Credit Business Management" (Yin Fa [2003] No. 121), "Notice from the People's Bank of China on Adjustments to Housing Credit Policy Matters" (Yin Fa [2006] No. 184), "Notice from the People's Bank of China and the Banking Regulatory Commission on Strengthening Commercial Real Estate Credit Management" (Yin Fa [2007] No. 359), "Supplementary Notice from the People's Bank of China and the Banking Regulatory Commission on Strengthening Commercial Real Estate Credit Management" (Yin Fa [2007] No. 452), "Notice from the People's Bank of China on Expanding Commercial Personal Housing Loan Interest Rate Discounts" (Yin Fa [2008] No. 302), "Notice from the People's Bank of China and the Banking Regulatory Commission on Improving Differentiated Housing Credit Policies" (Yin Fa [2010] No. 275), "Notice from the People's Bank of China on Implementing Differentiated Housing Credit Policies" (Yin Fa [2011] No. 66), "Notice from the People's Bank of China and the Banking Regulatory Commission on Further Improving Differentiated Housing Credit Policies" (Yin Fa [2015] No. 305), "Notice from the People's Bank of China and the Banking Regulatory Commission on Adjustments to Personal Housing Loan Policies" (Yin Fa [2016] No. 26). Where previous regulations conflict with these opinions, these opinions shall prevail. The relevant department head of the People's Bank of China answers reporter questions regarding the "Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Development Model for Real Estate." On August 28, the People's Bank of China and the National Financial Supervision Administration jointly issued the "Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Development Model for Real Estate" (hereinafter referred to as the "Opinions"). Relevant officials from the People's Bank of China answered questions from reporters regarding related issues. Q: What is the background of the issuance of the "Opinions"? A: The Central Urban Work Conference pointed out that China's urbanization is shifting from a period of rapid growth to a stage of stable development. The Party Central Committee and the State Council issued deployments for accelerating the establishment of a new development model for real estate. The 14th Five-Year Plan Outline proposed to improve the foundational systems of commodity housing development, financing, sales, and others. The "Opinions," as a supporting system for the reform of the commodity housing sales system, are an important component of improving the foundational system of real estate. They are based on the needs for the transformation and development of the real estate industry and constructing a new model, aiming to build a foundational system for real estate credit at the macro level, optimize the real estate credit system, better meet reasonable credit demands in real estate, protect the legitimate rights and interests of homebuyers, and promote a virtuous cycle between finance and real estate. The "Opinions" and the specific management methods for personal housing loans, commodity housing development loans, and commercial real estate loans together form the institutional system for real estate credit under the new model. Q: How will the "Opinions" better meet the reasonable credit needs of the real estate sector? A: The "Opinions" revolve around addressing the credit demand within the full lifecycle of real estate development, construction, sales, and operation, clarifying the types of loans in subfields such as commodity housing, affordable housing, rental housing, and commercial real estate, strengthening the interconnections between different types of loans and coordinating key factors such as loan targets, terms, purposes, and mortgage rates, thereby establishing a comprehensive and orderly real estate credit product system. To better meet the reasonable credit needs of real estate, the "Opinions" focus on optimizing two core systems: development loans and personal housing loans. First, a lead bank system for development loans is established to enhance the financial service capabilities for the transition and development of the real estate industry. The "Opinions" clearly state that a single real estate project corresponds to one lead bank, which will individually or lead a syndicate in issuing development loans. The term of development loans should be aligned with the project construction and sales cycle, covering the entire process from project initiation to completion filing, with pre-sale projects having a maximum term of 5 years, completed sale projects up to 7 years, and commercial real estate projects up to 7 years, and the initial repayment date should generally be after the project completion filing. Second, it strengthens the connection between personal housing loans and development loans. The "Opinions" specify that personal housing loans should be issued through a trustee payment method. For newly purchased homes that are sold as completed properties, the trustee payment should be made to the project companys fund account set up at the lead bank; for pre-sales, the payment should be made to the project pre-sale fund supervision account. Third, to adapt to economic and social development needs, the "Opinions" extend the maximum term of personal housing loans from 30 years to 40 years, providing greater flexibility for both the borrower and lender, with specific terms determined through negotiation between the homebuyer and the commercial bank. This article is compiled from the "Central Bank" official website, edited by Jiang Yuanhua.