New loans with advanced stock, lagging age, and double restrictions on housing age - frontline observation of the new policy of "40 year housing loans" implemented by banks
2026-09-24
The new policy of "40 year mortgage" has been implemented for nearly a month, and the bank's processing speed has significantly increased. The reporter recently visited and learned that most banks are now able to accept new housing loans with a maximum term of 40 years, and some banks have also opened up extension channels for existing housing loans. However, not everyone is eligible for loans with a maximum term of 40 years, as there are multiple constraints such as age, housing age, and building structure. The progress of existing loan extensions is also differentiated due to system upgrades, contract changes, and risk reassessments.
Bank accelerates deployment
The acceptance of new housing loans is gradually expanding
On August 28th, the People's Bank of China and the State Administration of Financial Regulation jointly issued the "Opinions on Reforming and Improving Real Estate Credit Management to Accelerate the Construction of a New Model for Real Estate Development", which clarifies that the term of personal housing loans will be extended from a maximum of 30 years to a maximum of 40 years. According to incomplete statistics, as of now, institutions such as Industrial and Commercial Bank of China, Construction Bank, Bank of Communications, Postal Savings Bank of China, Nanjing Bank, Changsha Bank, Hankou Bank, and some small and medium-sized rural commercial banks in Yunnan Province have clearly stated that they can accept applications for personal housing loans with a term of 40 years. Some banks have also opened online pre-approval channels, which can achieve pre-approval within a few minutes and approval within 24 hours at the fastest.
From the perspective of bank deployment pace, state-owned large banks have taken the lead in landing with their system and branch advantages. Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, and other banks have previously confirmed to customers that they can handle relevant business in accordance with the new regulations. Joint stock banks and local banks have followed up, for example, Nanjing Bank Hangzhou Branch recently clarified that the maximum term for personal housing loans can reach 40 years and supports online applications; Changsha Bank announced that it has fully implemented the new policy for up to 40 years, providing one-stop services from consultation, approval to loan disbursement.
However, banks generally have a cautious deadline approval mechanism in place at the receiving end. The 'maximum 40 years' is a policy cap, not a deadline that banks must provide to customers. From the implementation situation in Beijing, Guangzhou and other places, banks generally regard "borrower age+loan term" as the core constraint condition. At present, the majority of banks implement a standard of no more than 75 years for the sum of the two, and some banks may relax the standard to 85 years for high-quality corporate clients. If calculated based on "age+term not exceeding 75 years", buyers under the age of 35 theoretically have the opportunity to borrow for 40 years; Even with a more relaxed 85 year timeframe, borrowers aged 45 and above find it difficult to reach the 40 year limit.
Housing age is another practical threshold for bank term approval. When applying for a long-term loan for a second-hand house, banks usually determine the loan term based on factors such as the structure of the house and the remaining land use period. A personal loan manager of a state-owned large bank in Beijing stated that the term of personal mortgage loans is generally set at the lower value of "75 minus age" and the calculation results related to the age of the house. Some old bungalows within the Second Ring Road cannot even apply for loans; The land use period for residential properties is generally 70 years, with some even up to 50 years. If developers hold onto the land and do not develop it in the early stages, the loan term needs to be further shortened, and new houses can usually fully utilize the loan term. Housing provident fund loans are even stricter and currently do not participate in extensions. Some housing units are calculated according to the "brick concrete 47 age reduction" and "steel-concrete 57 age reduction" methods, and only those included in the new renovation list of the Housing and Urban Rural Development Commission can be executed according to the "67 age reduction".
40 years is the upper limit set by the policy, and it is not mandatory for banks to give customers 40 years, "said a shareholder of a joint-stock bank. The final deadline still needs to be determined through negotiation between the bank and the borrower, taking into account the borrower's age, income, credit history, and housing situation. From market feedback, it can be seen that there are not many customers who have actually submitted their 40 year new mortgage applications, and the increase in total interest is their main concern.
Stock delay and current differentiation
The system and regulations are still being adjusted
Compared to newly issued housing loans, whether existing housing loans can be extended to 40 years is more of a concern for the already purchased population, and banks are more cautious in promoting the pace of existing loans. The "Management Measures for Personal Housing Loans (Trial)" released simultaneously stipulate that eligible existing personal housing loans can negotiate to adjust their repayment plans, and the cumulative extension period shall not exceed half of the original loan period. The total extension period of the original loan period and the extension period shall not exceed 40 years. This framework provides policy basis for the extension of existing housing loans, but banks generally face changes in original contracts, risk reassessment, system transformation, and other processes, making their business processes more complex than new loans.
At present, some banks have launched repayment plan adjustment portals on mobile banking apps, and the maximum extension period for the original loan contract can be applied for up to 480 terms. However, online applications are mostly used as a reference, and existing mortgage loans cannot be automatically extended. Borrowers still need to bring income proof, property ownership certificate and other materials to the branch for offline application and manual approval. After approval, they need to re sign the contract change agreement and reapply for mortgage. Industrial and Commercial Bank of China stipulates that the extension period cannot exceed half of the original loan term, which means that if the original loan term is short, it is difficult to directly extend it to 40 years.
A post loan manager from a major bank stated that the policy details related to existing housing are still under discussion. Another state-owned individual loan customer manager revealed that customer applications are now accepted, but the specific approval conditions have not yet been issued to the handling agency. The actual processing time may still vary depending on the local branch, handling bank, and customer type.
According to the feedback from borrowers, although some regional bank apps have launched the existing loan extension module, when clicked, it prompts "The repayment plan adjustment service is not yet available in the region where the loan is located", indicating that the progress of bank system transformation and regional promotion is still uneven.
The core attraction of extending existing mortgage loans lies in reducing monthly payments. Based on the first commercial mortgage interest rate of 3.05%, the loan of 1 million yuan adopts equal principal and interest, with a term of 30 years and a monthly payment of approximately 4243 yuan, with a total interest of approximately 527500 yuan; Extending to 40 years, the monthly payment has decreased to about 3609 yuan, a decrease of about 634 yuan per month, but the total interest has increased to about 732200 yuan, an increase of about 204700 yuan. If calculated at an annual interest rate of 3%, the monthly payment for a 40 year term is about 3580 yuan, a decrease of about 636 yuan from 4216 yuan for a 30-year term, a decrease of about 15.1%, but the cumulative repayment amount has increased by about 200000 yuan.
Yan Yuejin, Vice President of Shanghai E-house Real Estate Research Institute, said that extending the repayment period can reduce monthly payment pressure by about 15%, which is a real "burden reduction" for the group with phased income growth characteristics. Although extending the period increases total interest, the logic of "time for space" allows homebuyers to have a more relaxed choice between short-term repayment ability and long-term debt arrangement.
Overall, the new 40 year housing loan policy has entered the practical operation stage of banks from the policy level. While accelerating the deployment on the acceptance end, banks generally prudently determine the actual term based on variables such as age, housing age, income, and credit rating; The delay of stock is due to more complex processes such as system transformation, contract changes, and risk reassessment, resulting in significant differences in the implementation progress of various banks. Extending the loan term as a demand side support tool for "exchanging time for space" depends on the pace of restoring residents' income expectations and the process of rebuilding confidence in the real estate market. Experts believe that in the future, as more banking regulations are implemented, the balance between policy flexibility and risk prudence will still be the core of market attention.(Outlook New Era)
Edit:Luoyu Responsible editor:Zhoushu
Source:jjckb.cn
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