Lending curbs by banks to cool down fiery property mart

SHANGHAI: Heeding the government's call to rein in runaway property prices, banks are looking to tighten lending by canceling mortgage interest-rate discounts to first-time buyers.

Major banks are expected to take the lead in this initiative, thereby setting a precedent for mortgage lenders in other cities, especially Shanghai, where the property market has been on the boil for the past six months.

The government-inspired interest-rate discount, ranging from 15 to 30 percent, was introduced at the end of 2008 to encourage residential housing sales at the outbreak of the global financial crisis.