Central Plains Mortgage: The Hong Kong property market atmosphere is picking up, and the Bank of Hong Kong is increasing its enthusiasm for mortgage loans

The Zhitong Finance App learned that according to market sources, Bank of China Hong Kong (02388) raised mortgage cash rebates. Wang Meifeng, managing director of Zhongyuan Mortgage, responded that entering 2025, the Bank of Hong Kong's attitude towards mortgage loans had clearly turned positive. Since the first quarter of this year, banks have begun to raise the level of mortgage cash rebates. Since May of this year, capital inflows into Hong Kong have driven up banking system balances, leading to a sharp drop in interest rates (HIBOR). The one-month interest rate associated with the mortgage rate fell from 3.98% in early May to 0.52% (June 17). Today, it is 1.07%, a drop of nearly 3%. This has reduced bank capital costs. Coupled with the fact that the Hong Kong dollar loan-to-deposit ratio has fallen to a 15-year low and banks have abundant liquidity, the housing market atmosphere has recently picked up.

Banks drastically cut cash rebates last year, and now there is room for a gradual increase. Recently, banks have further raised their mortgage cash rebates in the market. Currently, cash rebates for small and medium-sized banks are mainly between 0.2% and 1%, which is different from large banks, driving large banks to adjust the narrow gap in cash rebates to seek more business. Wang Meifeng believes that as the atmosphere in the property market improves, banks will maintain a positive attitude towards buildings, and it is expected that there will be room for a moderate increase in cash rebates.

Wang Meifeng said that currently there are large differences in mortgage offers and cash rebates between banks, depending on the loan amount, different conditions and different customer categories. For example, some banks grant higher rebates for larger mortgage cases or insured customers, or large depositors, food paying customers, talent customers, or high-quality customers. Customers can understand and compare mortgage offers from different banks according to their own circumstances.