Maximum mortgage term extended from 30 to 40 years; implementation varies by
lender. Many banks say they have not yet received internal operational notices
and are awaiting guidance, but several have already begun offering 40-year
loans. Some joint-stock banks cap borrower age plus loan term at 75 years,
effectively limiting 40-year loans to borrowers aged 35 or younger. A
state-owned bank staffer said the longer term reduces monthly repayment pressure
but increases total interest expense. A bank relationship manager implementing
the change said existing 30-year borrowers can apply to move to 40 years;
converting a 1 mln yuan loan from 30 to 40 years reduces annual principal
repayments by about 7,000 yuan.
