HSBC homes in on mortgages with below market rates

The Hongkong and Shanghai Banking Corp has launched a new fixed-rate mortgage plan of 3.18 percent for the first three years or 3.03 percent for the first five years, 32 to 47 basis points lower than the current market rate.

Rates after the period would be equivalent to the prime rate minus 1.75 percent – approximately 3.5 percent – which matches the current market level.

With the slower pace of US interest rate cuts, local mortgage rates are expected to gradually drop to around 3.25 percent by the middle of the year and remain above 3 percent throughout the year, according to Centaline Mortgage.

GORDON YANG