The National Financial Regulatory Administration has officially rolled out five new regulatory measures covering development loans for commercial housing, personal housing mortgages, commercial real estate lending, urban renewal project financing, and trust business related to the real estate sector.
The move is designed to align with the central government's strategic push to accelerate the formation of a new model for real estate development. The measures aim to better protect homebuyers' rights, fulfill legitimate financing needs in the sector, and underpin the high-quality evolution of the property market. These rules were developed collaboratively with relevant government departments and are seen as a key step in reforming and upgrading the existing real estate financing framework.
The newly introduced policies fully incorporate the essentials of the new real estate development model. With a clear focus on project-centric lending, a lead bank arrangement, and closed-loop fund management, the measures guide banking institutions to deliver real estate financial services grounded in market principles and rule-of-law practices. The goal is to establish end-to-end financial backing that spans the entire lifecycle of property projects, from development and construction through to sales and operations.
The framework for commercial housing development loans borrows extensively from best practices observed under the "whitelist" mechanism. It pledges equal treatment for projects regardless of ownership structure, ensuring that viable commercial housing developments can gain access to the funding they need.
Adjustments to personal housing mortgage rules are also central to the package. The regulations introduce a more rational timing for loan disbursement, a recalibrated ceiling for the debt-to-income ratio, and an extension of the maximum permissible loan term. These changes are intended to shield the lawful interests of buyers while also making it easier to satisfy both first-home and upgrade demand among residents.
In the realm of commercial real estate, the new framework outlines clear lending criteria across the development, acquisition, and operation phases. This is expected to help foster stable and healthy expansion of the commercial property market. Meanwhile, the urban renewal lending guidelines aim to sharpen the precision, relevance, and effectiveness of financial services delivered by banks and financial institutions in support of high-caliber urban revitalization projects.
Trust companies operating in the real estate space will now work under a dedicated set of rules that emphasize serving the real economy, managing risks prudently, and enforcing investor suitability standards. The measures set out clear operational guidelines, bolster professional capacity building, and strengthen investor protection, enabling trust institutions to leverage their distinctive strengths in carrying out real estate-related trust activities.
Going forward, the National Financial Regulatory Administration will work alongside other departments to steer banking institutions in putting these measures into practice. The ultimate objective is to deliver financial support and services that are well-matched to the demands of the new real estate development model, thereby laying a stronger foundation for a balanced and quality-driven real estate sector.