For the past two years, mortgage interest rates have remained at ultra-low levels, but some analysts anticipate an upward trend later this year.
In fact, a few leading lenders have recently readjusted their mortgage rates, suggesting the interest rate cycle may have turned.
Market leaders HSBC and Bank of China (BOC) recently raised their borrowing costs for the Hong Kong Interbank Offer Rate (Hibor). BOC raised its rates from 0.8 per cent to 0.9 per cent, capping it at 1.2 per cent, with the highest level at prime minus 2.7 per cent.
HSBC amended its rates to Hibor plus 0.9 per cent, with a cap of 1.2 per cent, while the Bank of East Asia and Citibank have also made similar moves.
However, Hang Seng Bank has suspended its Hibor-based mortgage and is focusing on prime-based mortgages.
This month, mReferral Mortgage Brokerage Services set its rate at 1.68 per cent for fixed mortgages - the lowest in town - for the first 18 months, followed by prime minus 3.1 per cent (actual rate at 2.15 per cent), or Hibor plus 0.8 per cent.
The offer caters to clients of Midland Realty and Hong Kong Properties. Indeed, mReferral's figures show fixed-rate plans accounted for only a small portion of the market.