One-month Hibor falls below 1pc

The one-month Hong Kong Interbank Offered Rate, closely tied to mortgage rates, has fallen below 1 percent for the first time in nearly three years on Tuesday.

The rate has dropped for a third consecutive day to 0.96036 percent, according to data from the Hong Kong Association of Banks.

This marks a decline of 23 basis points from 1.19048 percent on Monday.

The decline in the one-month Hibor has brought the actual mortgage rate to 2.26 percent, the lowest since July 2022, according to Centaline Mortgage.

For the monthly repayment on a 30-year mortgage of HK$5 million, for example, this translates into a monthly repayment reduction of around HK$3,341 – a 14.9 percent decrease in monthly burden, compared to the cap of 3.5 percent set by major banks.

STAFF REPORTER