TMTPOST --  The People’s Bank of China (PBOC) and the National Financial Regulatory Administration (NFRA) on Friday extended the maximum term for individual home loans to 40 years from 30 years.  The new rule was issued in the Opinions on Reforming and Improving Real Estate Credit Management and Accelerating the Establishment of a New Model for Real Estate Development. In order to accommodate economic and social development needs, the new document extends the maximum term of individual home loans for ten years, giving borrowers and lenders greater flexibility. The specific loan term will be determined through negotiations between the homebuyer and the commercial bank. Article 20 of the Opinions states that individual home loans issued by banking institutions must comply with minimum down-payment requirements. The maximum term of an individual home loan is 40 years, and the loan amount must not exceed the appraised value of the property being purchased. For loans with a term of one year or less (including one year), borrowers may either repay the principal and interest in a lump sum upon maturity or make monthly principal and interest payments. For loans with terms of more than one year, principal and interest must be repaid on a monthly basis.