Still, the central government's tightening policies, aimed at curbing torrid investments and head off inflation, has put pressure on the banks. The policies may curb demand for mortgages and slow a solid source of revenue.

The central government raised mortgage rates in April and also hiked the minimum down payment for larger apartments in a move to halt speculative capital and cool surging property prices.

The percentage of residents who are considering buying a home fell 0.6 percentage point to 17.6 percent in the second quarter from the previous quarter, the People's Bank of China said, citing its survey among 20,000 respondents in 50 cities nationwide.

Although banks and regulators declined to provide figures concerning mortgage loans, some lenders admitted a slowdown occurred and have taken steps to lure customers.

Preferential policies include giving a 10 percent discount on interest rates for first-time home buyers. They also let applications for mortgage loans be based on household income rather than personal income if a family proves it will live in the apartment.

"Mortgage loans still have rosy prospects because of China's red-hot economic growth and bulging personal wealth," said Zhu Yan, a Bank of China manager. "Lenders now want clients with low risk, especially those who want to buy an apartment for a home."

(For more biz stories, please visit Industry Updates)