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Bank giants like BOC Hong Kong (2388) and Hang Seng Bank further lifted mortgage cash rebates to up to 1.4 percent, while some small and mid-sized banks raised rebates to the highest level at 1.5 percent since late 2023.
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This occurred as lenders battled aggressively for mortgage market share amid a rally in the local property market this year.
BOC Hong Kong and Hang Seng Bank raised cash rebates from 1.2 percent to 1.4 percent, bringing the total number of banks offering over 1.4 percent cash rebates to 6.
The cash rebate rate for loans exceeding HK$20 million from Hongkong and Shanghai Banking Corporation has also gone up to 1.3 percent.
Notably, Chong Hing Bank provides a 1.5 percent cash rebate, with a low loan threshold of over HK$3 million. The plan carries a two-year penalty period. In the first year, borrowers must pay 1 percent of the original loan amount and repay the full cash rebate, whereas the second year requires only the repayment of the full cash rebate.
There is still room for the cash rebate rate to hike in the future amid the fierce battle, said Eric Tso Tak-ming, chief vice president of mReferral Mortgage Brokerage Services.
Major banks have actively expanded their mortgage businesses, including launching fixed-rate mortgage plans and raising cash rebates, which drove the big four banks' market share for completed property mortgages to a three-year high of 78 percent in June, Tso said.
In the first half of the year, mortgage registrations for completed properties surged 44.4% year-on-year to 41,707 cases, marking the highest figure in nearly four years for the period, he added.
Ivy Wong Mei-fung, managing director of Centaline Mortgage Broker, also stated that there is further upside for cashback, citing historical precedents where rebates hit 2 percent to 3 percent of the total loan amount in 2023.
