Some banks in China are offering wider discounts on mortgage rates for first-time home buyers, the state-run China Securities Journal reported Thursday, citing information from banks.

Home buyers can now get discounts of up to 15% for such loans from Citibank (China) Co. and Agricultural Bank of China Ltd. (601288.SH), the report said.

A number of local and foreign banks started offering a 10% discount on such loans in March, after the People's Bank of China in early February said it would encourage banks to satisfy the demand for loans among first-home buyers.

The Chinese government allows banks to offer discounts of up to 30% on loan rates for first-home buyers, but not many banks had done so due to Beijing's crackdown on speculation in the property market and tight credit controls.

China has slapped curbs on home purchases and tightened credit to developers and buyers over the past two years to dampen speculation and ward off social instability. The curbs have taken effect in recent months, with property prices and sales declining, pressuring cash-starved developers and other industries linked to the property market.

Newspaper website: http://www.cs.com.cn

-By China Bureau, Dow Jones Newswires; 8621 6120-1200; djnews.shanghai@dowjones.com