(Yicai Global) Feb. 2 -- The Guangzhou branches of China's four largest banks raised their mortgage rates for first time home buyers yesterday as their credit limits have tightened, Guangzhou Daily reported.

The Industrial and Commercial Bank of China Ltd., China Construction Bank Corp., Bank of China Ltd. and Agricultural Bank of China Ltd. hiked borrowing costs of such loans from a minimum of 5 percent above the benchmark rate to at least 10 percent over it in the capital city of China's southern province of Guangdong.

The rate for second home purchasers has remained unchanged at 15 percent over the benchmark.

Other financial institutions in Guangzhou will likely follow suit, insiders said. Rates may continue to go up, and most banks in the city are facing credit limit pressure, banking sector veterans said.

One Guangzhou bank was offering first time home buyer loans at the benchmark rate in December, and the number lending at 5 percent, 10 percent, 15 percent and 20 percent above that rate was 11, seven, two and one, respectively, per data from independent Chinese financial services platform Rong360.

Personal and corporate loan interest rates have been rising, a source at a state bank in Guangdong told Yicai Global. The interest rate on one lending product rose from 3.8 percent last year to 4.6 percent.