(Yicai Global) Jan. 7 -- A number of banks in Shanghai have accelerated their mortgage application process to better facilitate house purchasing amid the cooling property market.

The application review process is about two weeks and the possible loan is issued in less than a month, mortgage managers at Shanghai branches of many lenders, including Bank of China and Postal Savings Bank of China, said to Yicai Global.

It generally took about four to six months to secure a housing loan in China in the second half of 2021, Yicai Global learned through on-site interviews in November. The reason for the long process was the tight lending quotas of banks in first and second-tier cities, affected by the government's firm grip on the property market, following several property developers' missed bond repayments.

Some cities' mortgage rates and their loan issuance cycles could still be improved, said an analyst. However, the credit environment is not likely to be loosened significantly as the macroeconomic stance of regulators is to guide funds toward rigid demand and upgrades of residents' living conditions, the person added.

Shanghai still has room to stimulate the market. Other cities, including Guangzhou, have recently lowered their mortgage rates. The southern first-tier city has dropped the rate for first-time homebuyers to 5.65 percent, down from 5.85 percent, while second-time purchasers enjoy a rate of 5.85 percent. The eastern megacity has kept its respective rates unchanged at 5 percent and 5.7 percent.

The government is signaling a loosening policy direction. The central government and the People’s Bank of China said during conferences in December that it is necessary to support the commercial housing market to satisfy the reasonable housing demand of buyers and to facilitate the virtuous cycle and the healthy development of the real estate sector.

Editor: Emmi Laine, Xiao Yi