New | Hong Kong’s banks raise mortgage rates, after HKMA tightened risk rules
HSBC, Standard Chartered, Bank of China (Hong Kong) and Hang Seng raised their mortgage rates to Hibor plus 1.4 per cent.
Four of Hong Kong’s biggest commercial banks have raised their mortgage rates, following last week’s move by the city’s monetary authority to tighten borrowing rules and loans limits amid a surging real estate market.
HSBC, Standard Chartered, Bank of China (Hong Kong) and Hang Seng Bank all announced raising their Hibor-linked mortgage rates by 10 basis points to 1.4 per cent above the city’s interbank offered rate, or Hibor. The new rates at HSBC and Standard Chartered take effect on Monday, while Bank of China (Hong Kong) and Hang Seng said their moves are effective June 5.
“We will continue to work within the enhanced regulatory guidelines to ensure that our mortgage lending continues to be prudently managed,” HSBC said in a statement.
Hibor linked mortgages in Hong Kong have been stable in recent months, but this now seems set to change.
“An upward trend is expected to come,” said Rachel Lam, managing director at price comparison website Money Hero.
Standard Chartered attributed the rise in its lending rate to recent regulatory changes by the HKMA, Hong Kong’s de facto central bank.
