Mortgage rates

Chinese dream of home ownership stalled by galloping mortgage rates

Banks in Beijing are charging homebuyers higher mortgage rates, keeping many out of the market. Photo: Reuters

Many a mainlander received Lunar New Year wishes for the dream of home ownership to come true in the Year of the Horse, but the banks are providing a harsh dose of reality.

Wednesday, 12 February, 2014, 4:33pm 1 comment

Higher mortgage rates hit sales of new homes over weekend

Potential buyers browse a model replica of Hong Kong Ferry's Green Code project, which sold 52 flats over the weekend. Photo: Nora Tam

First-hand home sales were slack over the weekend as homebuyers adopted a "wait-and-see" stance after major banks in the city raised mortgage rates.

Some 90 new flats were sold on Saturday and Sunday, mainly at Hong Kong Ferry's Green Code project in Fanling, and The Reach in Yuen Long by Henderson Land and New World Development.

18 Mar 2013 - 2:53am

Small rate rise may have big impact on investors

Property prices look to be coming down in the wake of a 25 basis point increase in mortgage interest rates. Photo: Sam Tsang

Last week the Hong Kong government claimed a victory in its battle to halt the city's epic property bull market. Standard Chartered, Hang Seng Bank and HSBC raised mortgage rates for new home loans, triggering immediate drops in home prices.

18 Mar 2013 - 2:34am

Mainland China banks stay put on mortgage rates and down payment requirement

Banks on mainland China including ICBC stay put on mortgage rates and down payment requirement. Photo: Bloomberg

In a bid to crack down on speculation that has helped fuel a strong rally in prices since the second half of last year, the State Council has endorsed the People's Bank of China to raise down-payment requirements and mortgage rates for second-home buyers of properties in cities where prices have risen sharply.

15 Mar 2013 - 5:48am

Property firms take hit from rate rise

Property firms take hit from rate rise

Shares of Hong Kong developers fell yesterday after three major banks raised mortgage rates by 25 basis points amid mounting risk in the property market.

15 Mar 2013 - 4:37am

Further mortgage rate rise 'could cut home prices by 20pc in two years'

Further mortgage rate rise 'could cut home prices by 20pc in two years'

Home prices in Hong Kong may fall by 15 to 20 per cent in two years following the increase in mortgage lending rates, an investment bank predicts, but some developers and bankers believe the impact will be small.

Deutsche Bank, which forecast mortgage rates to rise a further 0.75 of a percentage point, said prices could drop by 20 per cent in the coming years.

15 Mar 2013 - 5:21am

Mortgage rate hikes add note of caution to markets

Mortgage rate hikes add note of caution to markets

The decision by HSBC and Standard Chartered to raise mortgage lending rates by 0.25 percentage points should not come as a surprise. Other lenders are likely to follow their lead, as Hang Seng Bank did yesterday.

15 Mar 2013 - 3:31am 1 comment

New step may not help banks but it does hurt homebuyers

HSBC and Standard Chartered are charging a higher interest rate for new residential mortgage loans. Photo: Bloomberg

Wednesday's move by HSBC and Standard Chartered to raise the interest rates they charge on new mortgages was no surprise.

Bankers had warned an increase would be inevitable after the Hong Kong Monetary Authority last month ordered them to increase the amount of capital they hold against new residential mortgages to at least 15 per cent of the loans' value.

15 Mar 2013 - 4:37am 5 comments

Small banks may gain from rate wait

The latest increase in mortgage rates may cool the property sector. Photos: K.Y. Cheng, Sam Tsang

The latest increase in mortgage rates in more than a year may offer some small banks a rare opportunity to grab a greater market share if they continue to hold their rates for some time.

15 Mar 2013 - 5:31am

Sellers cut asking prices on homes as banks raise mortgage rates

Victor Lui says the rate rise will have little impact. Photo: Dickson Lee

From today, HSBC's best lending rate for new home loans will rise to 2.85 to 3.15 per cent, from 2.6 to 2.9 per cent. Standard Chartered has also raised rates from today.

14 Mar 2013 - 7:47am

Hong Kong's new homebuyers hit by rise in interest rates

Advertisements outside a property agency in Quarry Bay. People are less confident about buying than earlier in the year, a survey shows. Photo: Dickson Lee

Centaline Property Agency said last night that some owners had immediately slashed their asking prices. A 922 sq ft flat in Taikoo Shing was on offer for HK$13 million, a reduction of 7 per cent. Other owners dropped their prices by up to 10 per cent.

14 Mar 2013 - 2:13pm