Cheung Kong (Holdings) has lined up HSBC to provide 18-month fixed-rate mortgages to buyers of Victoria Towers in Tsim Sha Tsui.
The interest rate for the loan period would be fixed at 3.83 per cent, about 1.08 percentage points above the present average floating-rate mortgage rate of 2.75 per cent.
To qualify, a buyer would need to borrow at least HK$1 million and the mortgage would only be extended in lots of HK$1 million. The rest would be lent at 2.5 percentage points below the floating prime rate.
Cheung Kong is the first developer with a fixed-rate loan packages. Its offer came just one day after HSBC said it would make available three-year fixed-rate loans at 1.5 to 1.75 percentage points above the floating mortgage rate.
Cheung Kong has introduced various packages to attract purchasers to its development, which faces strong competition from rival project Sorrento at Kowloon Station, which is being developed by Wharf (Holdings).
Earlier, Cheung Kong agreed to put on hold a controversial plan to link rebates on Victoria Towers to the performance of the stock market.