Henan discounts mortgages to boost property market

Henan provincial officials have told banks to offer mortgage discounts to buyers of a first home, as local governments look to ease the effect of strict central government controls on the property market, The Wall Street Journal reported. The provincial government said on its website Monday that it directed banks to offer first-time home buyers discounts of up to 30% on the benchmark lending rate. It also eased the requirements for these loans, including people who have bought and sold a house in the past. The central government’s two-year campaign to suppress soaring property prices has limited the ability of local governments to raise revenue through property sales. In response, local governments have unilaterally taken steps including offering tax concessions and easing residency rules for out-of-town buyers to spur sales. Beijing may be becoming more tolerant of local authorities’ efforts to prop up the real-estate market as the country’s economy slows.