Date
25 July 2017
Bank of East Asia started the ball rolling with a mortgage rate cut last week. Photo: HKEJ
Bank of East Asia started the ball rolling with a mortgage rate cut last week. Photo: HKEJ

Seven banks follow Bank of East Asia in lowering mortgage rates

Seven lenders have lowered their mortgage rates after Bank of East Asia Ltd. (00023.HK) reduced its rate last week.

The banks now offer a rate 1.6 percent above the Hong Kong Interbank Offering Rate, with a minimum loan of HK$2 million (US$260 million) in general.

The interest rate has fallen even lower than the bottom reached in 2011 of HIBOR +1.7 percent.

The seven banks that followed suit are Hongkong and Shanghai Banking Corp. Ltd., Bank of China (Hong Kong) Ltd. (02388.HK), Standard Chartered Bank (Hong Kong) Ltd., Industrial and Commercial Bank of China (Asia) Ltd., OCBC Wing Hang Bank Ltd., Wing Lung Bank Ltd. and Nanyang Commercial Bank Ltd.

Centaline Mortgage Broker Ltd. managing director Ivy Wong Mei-fung expects no price war, as one might end up in a vicious circle.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP/FL

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Seven lenders have lower their mortgage interest rates to match with The Bank of East Asia Ltd. (00023.HK) after the latter reduced its price last week.

The banks now offer a scheme 1.6 percent above the Hong Kong Interbank Offering Rate with a minimum lending amount of HK$2 million in general.

The interest rate level stand even lower than the bottom of H+1.7 percent marked in 2011.

Those seven banks that follow suit include The Hongkong and Shanghai Banking Corp. Ltd., Bank of China (Hong Kong) Ltd. and Standard Chartered Bank (Hong Kong) Ltd.

Industrial and Commercial Bank of China (Asia) Ltd., OCBC Wing Hang Bank Ltd., Wing Lung Bank Ltd. and Nanyang Commercial Bank Ltd. are also among them.

Centaline Mortgage Broker Ltd. managing director Ivy Wong Mei-fung expects no price war will be resulted despite the lenders’ move given the potential vicious cycle that is unlikely welcome by market players.

[Chinese version中文版]

- Contact us at [email protected]

VW/JP

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