• Tue
  • Sep 16, 2014
  • Updated: 4:28pm

Fubon launches Hibor-linked mortgage

PUBLISHED : Tuesday, 28 March, 2006, 12:00am
UPDATED : Tuesday, 28 March, 2006, 12:00am

Fubon Bank (Hong Kong) expects its new home lending to double this year after unveiling a competitive mortgage product linked to its interbank borrowing rate, starting yesterday.


The bank said its traditional prime rate-linked home loans were not as competitive as the latest offers by the major lenders, but with its new Hibor-based mortgage packages it aimed to gain new customers and market share.


Shera Lee, senior vice-president and head of consumer banking, said the rate for its new mortgage product was 0.78 percentage points above Hibor for a minimum loan amount of $2 million.


Most of the lenders that offer Hibor-linked mortgage products, including Hang Seng Bank, DBS Bank (HK), and Liu Chong Hing Bank, have priced their loans at 0.8 percentage points above Hibor.


Under the latest Fubon plan, the initial mortgage rate will be fixed at 4.98 per cent in the first year. After that it will float at 0.78 percentage points above Hibor, or 2 percentage points below prime (presently 8 per cent), whichever is lower. The rates will be reviewed every three or six months. Ms Lee said the bank hoped the two basis point difference between its plan and others' would lift Fubon's market share.


Three-month Hibor was 4.46 per cent yesterday.


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