Rumor has it that HSBC (00005) raised its mortgage cash rebate experience: it has a positive effect on the Hong Kong property market

The Zhitong Finance App learned that according to some sources, HSBC Holdings (00005) raised the cash rebate for new mortgages of HK$1 million or more from 0.1% to 0.2%. Among these, the loan amount of HK$10 million can be increased to 0.58%, which is a record high among major banks. Cao Deming, chief vice president of Meridian Mortgage Referral, said that Hong Kong's one-month interbank interest rate began to plummet at the end of May. Even though interest rates have rebounded recently, they are still at a relatively low level, relieving pressure on individual banks' capital costs, and appropriately adjusting mortgage-related offers to benefit new mortgage buyers, which has a positive effect on the Hong Kong property market.

Furthermore, property prices in Hong Kong have been rising for two months, and interest rates have repeatedly remained low, and banks are becoming more active in the mortgage business. It is expected that other banks will have an opportunity to adjust their mortgage-related offers in order to secure mortgage business in the second half of the year. Currently, various banks may have different mortgage policies and related benefits. Cao Deming suggests that new mortgage customers should compare three to find the most suitable and preferential bank mortgage.

According to the latest data from the Meridian Mortgage Referral Research Division and the Land Registry, the current property market share of the four largest banks in Hong Kong increased by 9.3% to 74.9% in June 2025 from 65.6% last month. Cao Deming said that at present, both large banks are increasing mortgage cash rebates to seek mortgage business in the second half of the year. It is expected that the market share of large banks may increase.