Banks Push Fixed-Rate and Linked Mortgage Offers
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
Major banks in Hong Kong are competing more aggressively for mortgage business, rolling out several new plans and sweeteners for different types of borrowers. The latest options highlighted include a three-year fixed-rate mortgage at 2.73%, mobile end-to-end mortgage applications for subsidised housing buyers, and Mortgage-Link accounts that can be held in both Hong Kong dollars and renminbi.
Key Points
- Banks have turned more proactive on mortgages this year, and the four largest lenders have kept their completed-home mortgage market share above 75% for three straight months, according to mReferral Mortgage Brokerage Research and Land Registry data .
- Three major banks are offering fixed-rate mortgages at 2.73% for the first three years, 52 basis points below newly originated prime-based and HIBOR-based mortgages at 3.25%, with applications due by month-end .
- One of those banks has extended the mortgage application deadline for primary-market transactions to September 30, giving buyers of new homes a longer window to apply .
- The fixed-rate plan may appeal to borrowers with non-fixed income, long-term investors, and owners who previously used developer financing and may refinance to cut interest costs immediately .
- Some banks now let buyers of first-hand and second-hand units under Home Ownership Scheme, Green Form Subsidised Home Ownership Scheme and Tenants Purchase Scheme apply entirely through a mobile app, with preliminary approval possible in as fast as one working day .
- Certain lenders also offer Mortgage-Link deposit accounts in both Hong Kong dollars and renminbi, with each currency capped at 25% of the outstanding mortgage balance .
Why It Matters
For homebuyers and existing borrowers, the latest promotions widen the choice between rate certainty, digital convenience and interest-saving cash management. Borrowers with mixed income patterns or both Hong Kong dollar and renminbi deposits may find these structures especially relevant while interbank rates have yet to fall sharply and could still rise .