Major Banks Extend Fixed-Rate Mortgage Plans as Usage Hits 8-Year High
SingTao · 1 SOURCESabout 1 hour ago2 MIN
Summary
Three major Hong Kong banks have extended their fixed-rate mortgage plans until the end of 2026, responding to surging demand as the scheme's adoption rate reached its highest level since 2018. One bank has increased its fixed annual rate from 2.73% to 2.93%, adding 20 basis points, though the rate still undercuts the prevailing floating-rate ceiling of 3.25% by 32 basis points. Primary residential buyers who submit their applications before the end of this month and draw their loan by January 31, 2027 can still secure the original lower rate.
Key Points
- Fixed-rate mortgage plans accounted for 34.1% of newly approved mortgage loans in July, the highest proportion in more than eight years
- One major bank has extended its fixed-rate mortgage scheme deadline to December 31, 2026
- The new fixed rate of 2.93% applies to primary residential applications from October 1 to December 31, 2026, and secondary residential applications from September 1 to December 31, 2026
- For a HK$5 million loan over 30 years, the 2.93% fixed rate yields monthly payments of HK$20,892, compared with HK$21,760 at the 3.25% floating cap—a saving of HK$868 per month
- The schemes are particularly suited to borrowers with unstable income, long-term rental investors, and owners seeking to refinance away from high-interest developer mortgages
Why It Matters
The extended deadline and slight rate adjustment signal that major banks remain committed to the fixed-rate mortgage market despite broader interest rate uncertainty, offering borrowers a window to secure more affordable financing ahead of anticipated further rate increases .
The extended deadline and slight rate adjustment signal that major banks remain committed to the fixed-rate mortgage market despite broader interest rate uncertainty, offering borrowers a window to secure more affordable financing ahead of anticipated further rate increases .