Effective today, HSBC’s HIBOR-based rates in Hong Kong will be raised for the second time after last month’s hike.
Currently, HSBC’s one-month HIBOR rate rests at 0.2 percent, while its three-month rate stands at 0.26 percent. The new mortgage rates will range at HIBOR plus one to 1.5 percent and cash rebates from 0.2 to 0.5 percent.
This would mean that when a buyer borrows HK$1.4 million to purchase a home worth HK$2 million, the buyer needs to pay HK$6,564 to HK$6,885 monthly, which is HK$63 to HK$129 higher than its previous rate.
HSBC is the first among the top four lending companies in HK to raise its mortgage rates after the Bank of East Asia (BEA) increased its mortgage rates last Tuesday.
BEA raised its existing mortgage rate of HIBOR Plus 0.9 to 1.3 percent to HIBOR plus 1.3 percent, after the Hong Kong Monetary Authority (HKMA) expressed its concerns regarding the increased growth of lending in the SAR.