HSBC Extends Fixed-Rate Mortgage Plan Through Year-End with Rate Hike to 2.93%
HK01 · 5 SOURCESabout 1 hour ago2 MIN
Summary
HSBC has launched a new fixed-rate mortgage programme after its existing 2.73% plan ends this month, with the refreshed offer pricing rates at 2.93% for the first three or five years. The bank has also introduced transition arrangements allowing first-hand property buyers in September to still access the older 2.73% rate. Market data shows fixed-rate mortgages now account for 25.1% of residential mortgage business, rising for 10 consecutive months to an eight-year high. Industry observers say the new 2.93% rate remains attractive compared with the prevailing H-mortgage rate of 3.25%.
Key Points
- HSBC's new three-year and five-year fixed-rate mortgage plans are priced at 2.93%, up 20 basis points from the earlier 2.73% offer .
- For first-hand private residential properties, applications submitted by 30 September 2026 and drawn by 31 January 2027 can still obtain 2.73%; those filed from 1 October to 31 December 2026 and drawn by 30 April 2027 will be charged 2.93% .
- Second-hand private homes and cash-out or remortgage applications submitted by 31 August 2026 with drawdown by 31 December 2026 remain eligible for 2.73%; applications from 1 September to 31 December 2026 will carry 2.93% .
- After the fixed-rate period, the mortgage reverts to H+1.3% with a ceiling of P-1.75% (P = 5%), while customers continue receiving cash back and a penalty-free period of up to two years .
- With a HK$5 million loan over 30 years, the 2.93% fixed-rate plan results in monthly payments of HK$20,892, saving HK$868 per month compared with the prevailing H-mortgage ceiling rate of 3.25% .
Why It Matters
Data from the Hong Kong Monetary Authority shows fixed-rate mortgages captured 25.1% of all new residential mortgage business in June, marking the tenth consecutive monthly increase and the highest share in over eight years . Mortgage analysts note that with the one-month HIBOR at 2.79% and the US Federal Reserve shifting to a rate-hold stance, the prevailing H-mortgage rate is unlikely to fall below 3.25% this year, keeping the new 2.93% fixed rate competitive and likely prompting other major banks to extend similar offerings .
Data from the Hong Kong Monetary Authority shows fixed-rate mortgages captured 25.1% of all new residential mortgage business in June, marking the tenth consecutive monthly increase and the highest share in over eight years . Mortgage analysts note that with the one-month HIBOR at 2.79% and the US Federal Reserve shifting to a rate-hold stance, the prevailing H-mortgage rate is unlikely to fall below 3.25% this year, keeping the new 2.93% fixed rate competitive and likely prompting other major banks to extend similar offerings .