Hong Kong Banks Raise Mortgage Cash Rebates to 2.5%, Highest Since 2023
AM730 · 3 SOURCESabout 4 hours ago2 MIN
Summary
Several Hong Kong lenders have raised mortgage cash rebates to as high as 2.5% for select customer groups, reaching levels not seen since September 2023. Centaline Mortgage CEO Maria Wang Mei-feng says the move reflects banks' intensified competition for mortgage business as they chase annual targets in the fourth quarter. The rebate surge comes despite rising HIBOR rates, supported by the city's low loan-to-deposit ratio of 69.3%, the lowest in 17 years.
Key Points
- Some banks are now offering mortgage cash rebates as high as 2% for general customers, with rates reaching 2.5% for targeted groups such as talent scheme applicants, mortgage insurance borrowers, and high-deposit clients .
- Mainstream banks are currently offering rebates ranging from 1.2% to 1.5% of the loan amount, with leading institutions pushing rates above this range to capture market share .
- The Hong Kong dollar loan-to-deposit ratio dropped to 69.3% as of August, the lowest level in 17 years, giving banks ample capacity to expand mortgage lending .
- Despite HIBOR rising to around 3% over the past month, banks chose not to raise their Prime rates after the US Federal Reserve's interest rate increase, signaling a positive outlook on the property market .
- Banks are actively launching various mortgage products including low-interest fixed-rate mortgages, "P-then-H" plans with initial Prime-based pricing, and enhanced cash rebates to attract borrowers .
Why It Matters
The aggressive push by Hong Kong banks to win mortgage customers through higher cash rebates signals renewed confidence in the property market and could inject momentum into housing transactions as the fourth quarter unfolds. For prospective homebuyers, the competitive landscape means more choices and better deals, particularly for qualified buyer segments like those utilizing mortgage insurance schemes or high-value deposit holders .
The aggressive push by Hong Kong banks to win mortgage customers through higher cash rebates signals renewed confidence in the property market and could inject momentum into housing transactions as the fourth quarter unfolds. For prospective homebuyers, the competitive landscape means more choices and better deals, particularly for qualified buyer segments like those utilizing mortgage insurance schemes or high-value deposit holders .