On August 28, the People's Bank of China and the National Financial Regulatory Administration jointly issued the "Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Model for Real Estate Development" (hereinafter referred to as the "Opinions"). The document adapts to shifts in real estate market supply and demand dynamics, establishing a comprehensive and seamlessly connected real estate credit product and management framework to foster a virtuous cycle between finance and the property sector.
To better accommodate reasonable real estate credit demand, the Opinions focus on optimizing two core systems: development loans and individual housing loans. According to experts interviewed, the policy achieves multiple institutional breakthroughs, providing crucial support for building a new real estate development model. Together with management measures for individual housing loans, commercial housing development loans, and commercial property loans, it forms a comprehensive credit system under the new model.
Establishing a Lead Bank System
In the area of real estate development loans, the Opinions mandate a lead bank system, under which each individual real estate project corresponds to one bank serving as the lead bank (either a single lending bank or the lead arranger of a syndicated loan) to conduct closed-end management of project funds. The project company must open a dedicated fund account at the lead bank. During the project's lifecycle, aside from pre-sale funds and deposits subject to regulatory oversight, all project-related capital—including development loans, project equity funds, and cash sales proceeds—must be deposited into the account managed by the lead bank.
Yan Yuejin, deputy director of the Shanghai E-House Real Estate Research Institute, told reporters that the core of the lead bank system lies in reinforcing the bank's full-cycle responsibility for project financing, implementing due diligence duties, and ensuring more effective fund supervision. Additionally, the Opinions specify different development loan terms based on sales cycles. Specifically, loans for pre-sale projects are generally capped at 3 years, with a maximum of 5 years, while loans for cash-sale projects are generally capped at 5 years, with a maximum of 7 years.
A relevant official from the China Index Academy noted that previously, no unified national term regulations existed for real estate development loans, with industry practice generally ranging from 1 to 3 years. On one hand, the Opinions extend the permissible loan terms to better align with actual project development cycles. On the other hand, the significantly longer terms for cash-sale projects compared to pre-sale projects reflect policy support for the cash-sale model, facilitating the steady advancement of commercial housing sales system reform.
Extending Individual Housing Loan Terms
Regarding purchase loans, the Opinions extend the maximum term for individual housing loans from 30 years to 40 years, offering greater flexibility to both lenders and borrowers, with specific terms negotiated between homebuyers and commercial banks. Yan Yuejin analyzed that while longer terms result in higher total interest, the logic of "trading time for space" gives homebuyers more leeway in balancing short-term repayment capacity with long-term debt arrangements, reflecting the policy's flexibility.
Li Yujia, chief researcher at the Guangdong Provincial Housing Policy Research Center, noted that housing, as a big-ticket consumer item, is tied to household balance sheets, and policy must dynamically adjust to reduce the cost of housing consumption. Extending the loan term to 40 years lowers monthly payment burdens and boosts homebuying willingness.
The Opinions further stipulate that for newly built homes sold on a cash-sale basis, individual housing loans should be disbursed after sales filing, while for pre-sale properties, loans should strictly be disbursed after project completion filing. Additionally, the policy clarifies that individual housing loans must be issued through entrusted payment methods.
The aforementioned China Index Academy official stated that the Opinions refine the timing of loan disbursement based on property transaction forms and fully introduce entrusted payment. This design deeply ties loan disbursement to project delivery progress, with the core aim of "receiving the home before repaying the loan." Homebuyers only begin bearing loan principal and interest once the property meets delivery conditions, serving as a vital institutional safeguard for protecting buyer rights. Simultaneously, entrusted payment channels loan funds and pre-sale proceeds into closed-end supervision, fundamentally preventing fund misappropriation and project abandonment risks.
"Overall, the Opinions direct financial resources more precisely toward the goals of 'ensuring delivery, promoting transformation, and improving quality,' echoing the current phase where the real estate industry is entering an era of stock management, shifting from scale expansion to quality and efficiency enhancement," said the China Index Academy official. The policy further protects homebuyers' legitimate rights, promotes a virtuous cycle between finance and real estate, and aids in constructing a new real estate development model.