China’s central bank and financial regulators unveiled a package of new property rules on August 28, with the headline change extending the maximum term for individual home loans from 30 to 40 years. According to Yicai, most banks have yet to formally implement the policy, though a few—including China Construction Bank—have begun accepting applications under the new 40-year limit for existing mortgage customers, pending detailed implementing rules.
Newly released bank interim reports show mortgage balances at China’s six largest state-owned banks fell by more than 500 billion yuan (roughly $74 billion) in the first half of the year, to about 24.63 trillion yuan (about $3.66 trillion). CCB remains the largest mortgage lender despite its balance dropping below 6 trillion yuan.
Analysts say lengthening loan terms could cut average monthly payments by around 15%, boosting home-buying demand and easing default risk for borrowers facing temporary income strain. For example, on a 3 million yuan (about $446,000) commercial loan at a 3.05% rate, extending the term from 30 to 40 years would lower the monthly payment from 12,729 yuan (about $1,894) to 10,826 yuan (about $1,611), saving roughly 1,903 yuan (about $283) a month—though total interest paid would rise.
The new rules also introduce loan-extension provisions for borrowers in temporary difficulty and raise the debt-to-income cap from 55% to 60%. Nationally, outstanding individual mortgage balances stood at 36.29 trillion yuan (about $5.4 trillion) at mid-year, continuing 13 consecutive quarters of year-on-year decline, even as the broader property market shows signs of recovery.
Source: Yicai.com, August 31, 2026
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