No, the developer can pay in advance.

According to the "Notice of the People's Bank of China and the China Banking Regulatory Commission on Strengthening Commercial Real Estate Credit Management":

Article 3. Strict management of housing consumption loans

Commercial banks should focus on supporting the loan needs of borrowers to purchase their first small and medium-sized self-occupied housing, and can only issue housing loans to individuals who purchase housing whose main structure has been capped.

Commercial banks should remind borrowers to truthfully fill in relevant information in the housing loan contract regarding which house the loan is used to purchase based on the principle of honesty and trustworthiness.

For those who purchase their first self-owned house with a building area of ??less than 90 square meters, the loan down payment ratio (including local and foreign currency loans, the same below) shall not be less than 20.

For those who purchase their first home with a building area of ??more than 90 square meters, the loan down payment ratio shall not be less than 30%; for those who have used a loan to purchase a home and apply to purchase a second home (inclusive) For the above-mentioned houses, the loan down payment ratio shall not be less than 40%.

The loan interest rate shall not be lower than 1.1 times the benchmark interest rate for the same period and grade announced by the People's Bank of China, and the loan down payment ratio and interest rate level shall increase significantly as the number of units increases.

The specific increase rate is determined independently by commercial banks based on relevant principles of loan risk management, but the borrower’s monthly expenditure on repaying the housing loan shall not be higher than 50% of his monthly income.

Commercial banks are not allowed to issue housing mortgage loans where the loan amount fluctuates with the appraised value of the property and the purpose is not specified; for mortgaged properties, the net value after reassessment is not allowed to be used as collateral before the home buyer has repaid the loan in full. Additional loans.

Extended information:

According to the "Notice of the State Council on Resolutely Curbing the Excessive Rise in House Prices in Some Cities":

Article 3: Implement stricter distinctions and improve housing credit policies. For families purchasing their first home with a floor area of ??more than 90 square meters (including the borrower, spouse and minor children, the same below), the loan down payment ratio shall not be less than 30%.

For families who want to purchase a second home with a loan, the down payment ratio of the loan must not be less than 50%, and the loan interest rate must not be less than 1.1 times the benchmark interest rate.

For those who purchase a third or higher house with a loan, the loan down payment ratio and loan interest rate should be significantly increased, and the details will be determined independently by commercial banks based on risk management principles.

The People's Bank of China and the China Banking Regulatory Commission must guide and supervise commercial banks to strictly manage housing consumption loans. The Ministry of Housing and Urban-Rural Development, together with the People's Bank of China and the China Banking Regulatory Commission, must promptly formulate the standards for identifying second homes.

We must strictly restrict real estate speculation and speculative house purchases under various names. In areas where commodity housing prices are too high, rising too fast, and supply is tight, commercial banks may suspend the issuance of loans for the purchase of third or higher housing units based on risk conditions.

The issuance of housing purchase loans will be suspended for non-local residents who cannot provide proof of local tax payment or social insurance payment for more than one year. Local people's governments may take temporary measures to limit the number of housing units purchased within a certain period of time based on actual conditions.

Relevant policies will be strictly followed when purchasing houses by overseas institutions and individuals.

China Banking Regulatory Commission - Notice on Strengthening Commercial Real Estate Credit Management

Baidu Encyclopedia - Notice of the State Council on Resolutely Curbing the Excessive Rise in Housing Prices in Some Cities