(Yicai Global) Oct. 24 -- Many large banks in Fuzhou in China's southeastern province of Fujian have hiked mortgage rates again, setting the mortgage rate for first home buyers at 10 percent above the benchmark rate and that for second home buyers at 15 percent above the benchmark.

Major state-owned banks such as the Bank of China Ltd., Agricultural Bank of China Ltd. [SHA:601288] and Bank of Communications [SHA:601328] raised the mortgage rate for first home buyers to 5 percent above the benchmark last month, Fznews.com.cn reported. They later raised the rate for first home buyers to 1.1 times the benchmark and that for second home purchasers to 1.2 times the benchmark.

Due to a limited line of credit, mortgage rates in Fuzhou have continued to rise since the start of the year, with the mortgage rate for first-time buyers rising from 90 percent of the benchmark rate to 110 percent of it. Small and medium banks led the rate increase and large banks followed suit.

Following the adjustment, the interest for a USD150,900 (CNY1 million) loan with a 20-year term will increase by CNY33,000, or about CNY130 per month.

Banks have a backlog of loan applications, and some applicants who got approved had to wait for 2 to 3 months before getting their loans, an insider in Fuzhou said.