SHENZHEN has eased mortgage curbs for home purchases, allowing more people to qualify for favorable mortgage terms for their first homes.

The city issued a notice Wednesday, saying it would let people take preferential loans for first-home purchases regardless of their previous credit record from Aug. 31.

Shenzhen’s move to ease the mortgage curbs came after the southern metropolis of Guangzhou, China’s fifth biggest city, announced earlier Wednesday that it will no longer disqualify people who’ve ever had a mortgage — even if fully repaid — from being considered as first-time homebuyers.

That would make them eligible for smaller down payment thresholds and lower mortgage rates.

The moves comes after authorities called on cities to broaden the definition of first-home mortgage as part of a string of other measures to revive the property market, which accounts for roughly a quarter of the economy.

Last month, Ni Hong, China’s housing minister, urged other authorities to enact property-market easing measures, including reducing mortgage rates and down payment ratios for first-time homebuyers.

The easing by Shenzhen and Guangzhou spurs hopes that Beijing and Shanghai, China’s two most important cities, may follow suit and dial down a policy-tightening cycle.

“Easing by the two major cities on the same day helps stabilize market sentiment,” said Yang Hongxia, general manager for southern China business at China Index Holdings. “It’s possible for Beijing and Shanghai to follow them.”       (SD-Agencies)