BOC Hong Kong (2388) launched "First P then H" preferential mortgage interest rate promotion, as the city's major lenders battled aggressively for mortgage business amid the booming local property market.
The promotion targets first-hand and second-hand private residential property transactions, refinancing, refinancing with a top-up, and remortgage.
It combines the advantages of the latest preferential Prime-based Mortgage Plan (P Plan) and HIBOR Mortgage Plan (H Plan), offering a special preferential P Plan for the first two to three years amid the rate-hike cycle, allowing them to manage their initial home-purchase costs more effectively.
The Preferential P Plan Mortgage Rate is -2.32 percent. Applicants can switch to the H Plan after the two- to three-year period, with an interest rate cap of +1.3 percent and a cap of -1.75 percent for the P-rate.
After the plan automatically converts to an H-rate mortgage, customers can benefit from flexible long-term repayment arrangements that closely track changes in the interest rate cycle.
The application period is on or before December 31, and the drawdown period is between November 1 and April 30, 2027, both days inclusive.
