HOME speculators will find it difficult to escape China's tougher criteria on second-home mortgages.

Banks should consider both the mortgage and home purchase records of people applying for second mortgages, and the longer the list, the higher the down payment and interest rates, said a document issued by China's housing and lending regulators and the central bank.

It's the first time China has included home ownership records in determining second home mortgages, meaning buyers can no longer bypass higher interest rates or down payment requirements when seeking housing loans.

Previously, banks defined second homes only on the mortgage record - so if a buyer had already bought two homes but only turned to the bank once, an application on a third home would be deemed a second-home mortgage.

Under the new rule, such an application would be defined as a third-home mortgage, and much harder to get.

The new rule also states that out-of-town home owners who haven't paid income tax or social security funds in the previous 12 months in places where they are buying homes will also face the tougher requirement. Banks can also turn down mortgage applications in places where speculation is rampant.

The new rules, posted on the Ministry of Housing and Urban-Rural Development's Website on Friday, are a follow-up to an April State Council document designed to curb credit-driven property speculation.

Then, the State Council raised the minimum down payment on second-home mortgages to 50 percent from 40 percent and increased the interest rate by 10 percent.

The government also recommended banks halt lending to people seeking to buy a third home in places where prices had risen too rapidly or were already too high.

Cities such as Shanghai, where average new house prices soared 16 percent to 16,188 yuan (US$2,370) per square meter last year, and are above 20,000 yuan at present, are deemed to fall into that category.

One credit officer at a bank in Shanghai said: "We have been telling our clients that if they want home loans, they must move quickly, before the tougher definition of a second home becomes official."