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<HK Home>Big 4 HK Banks Tighten Mortgage Policies, Ending Cash Rebates
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In order to maintain the profitability of their mortgage business, HSBC, Standard Chartered, BOC HONG KONG (02388.HK) and HANG SENG BANK (00011.HK) have further reduced the cash rebate for first- and second-hand property mortgages, mortgage refinancing and remortgaging to zero from 0.5%, with only individual large mortgagors and mortgage insurance customers enjoying cash rebate of less than 1%, market rumored. The end of rebate policy this time was led by HANG SENG last Friday (12th), followed by HSBC, with BOCHK and Standard Chartered also doing so this week. HANG SENG responded that it would review and adjust the level of mortgage rebate from time to time, depending on market conditions, loan amount and other factors. BOCHK stated that its mortgage rate and rebate would depend on a number of relevant factors. HSBC and Standard Chartered indicated that they reviewed their mortgage rates and rebates from time to time and made adjustments in light of market conditions. Centaline believed that banks cut their rebates due to the continued high cost of capital. Currently, the major banks are only retaining rebates ranging from 0.1%-0.65% for mortgage insurance customers. It was believed that other banks will follow suit. mReferral pointed out that new flats were launched at low prices recently, and the first- and second-hand transactions became active again. In line with government measures such as the withdrawal of property spicy measures and relaxation of mortgage lending, public desire to enter the home market should not be affected too much even if the banks pare back on the rebate offers. AAStocks Financial News |
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