(Yicai Global) June 28 -- Mortgage rates have climbed to the highest level since October 2018 in southern China's Guangzhou, where housing prices jumped the most among China's first-tier cities last month, as several commercial banks raised their rates for the fourth time in the past six months.

After China Construction Bank hiked its rates early this month, many other lenders followed suit, which may limit the rapidly rising housing prices in the first-tier city, Yicai Global learned. Before this, mortgage rates were raised in the city in January, April, and April.

The highest loan rates for second-hand houses are already over 6 percent in Guangzhou, a mortgage broker told Yicai Global, predicting the rates will further be moved up in the second half of this year.

As borrowing is becoming increasingly expensive, the red-hot housing market could cool down. In May, Guangzhou's housing prices climbed 11.2 percent from a year ago and 1.5 percent from April, growing faster than in other first-tier cities, according to the National Bureau of Statistics.

Chinese commercial banks decide their loan interest rates based on the loan prime rate that the central bank reveals around the 20th day of each month. But this month, the LPR was left unchanged.

CCB's rates for first home buyers will be 100 basis points higher than the LPR. Second-hand residential housing purchasers' rates will be 120 bips higher than that baseline.

Industrial and Commercial Bank of China said last week that it will raise its rates for first home buyers to 5.55 percent, up 90 basis points from the LPR, on June 25. Second-hand housing loans will carry a rate of 5.75 percent, up 110 bips.

After ICBC, China Minsheng Bank, Ping An Bank, and Postal Savings Bank of China hiked their loan rates. However, clients of China Minsheng Bank may need to wait for two to three months before receiving the money due to the lender's tight liquidity.

Editor: Tang Shihua, Emmi Laine, Xiao Yi