Three more banks revise home loan rates

Business | 13 Sep 2019 5:09 pm

Three more banks have followed the Hongkong and Shanghai Banking Corporation to raise the mortgage lending rate.

BOC Hong Kong (2388), Hang Seng Bank (0011) capped the mortgage rate at prime rate minus 2.5 percent from 2.65 percent, indicating the real mortgage rate rising by 15 basis points to 2.625 percent. 

Also, Standard Chartered Bank (Hong Kong) set its rate at prime minus 2.75 percent, reflecting that the real mortgage rate climbed to 2.625 percent, from next Monday.

Centaline Mortgage managing director Ivy Wong Mei-fung, said  funding costs have risen recently. She expects more small banks to raise the mortgage rate.

The mortgage rate has accumulatively risen by 0.25 basis points so far this year, which means the monthly repayment for a mortgage has increased by about 3 percent, a relatively small influence to the broad property market, she said.

She expects the business of mortgage transfers between banks will fall by more than 40 percent in the fourth quarter, because mortgage rates have bee raised and cash rebates have been reduced.

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