bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

DBS Bank (Hong Kong) said customer inquiries about mortgages had almost doubled since HSBC launched its across-the-board 5 per cent home loan rate last month.

It responded yesterday by joining the mortgage war, offering customers a plan that allows them to choose between a Hibor-linked loan and a prime-linked loan.

Derek Chung Siu-kuen, DBS Bank's head of mortgages and secured loans, said most of the inquiries were requests for concessions from existing borrowers.

However, he said there was little room for rate discounts as many of the customers had already obtained a generous one-off rebate under their mortgage plans.

Earlier this month, Hang Seng Bank also joined the mortgage war as customers applied pressure for concessions after hearing about HSBC's home loan rate cuts.

'While it is difficult to give any concessions, we have to take into consideration customers' commercial relationship with us and see what we can do,' said Mr Chung, adding that the number of inquiries was not falling and there had not been a significant  loss of  mortgage customers.

Mr Chung said DBS hoped to maintain its 6.6 per cent home loan market share. 'But if  competition turns out to be irrational, with competitors offering cut-throat mortgage rates, we will not follow suit.'

Mr Chung added that Hibor-linked mortgages were becoming more popular.

While they accounted for only a single-digit percentage of the bank's overall mortgage portfolio last December, their contribution was in the double digits last month, he said.

DBS yesterday began offering a fixed mortgage rate of 4.98 per cent for the first year. After that, the rate will be 0.8 percentage point above Hibor or 2.5 percentage points below prime (currently at 8 per cent), whichever is the lower. The mortgage rates will be reviewed regularly after the first year.

Previously, the bank was offering mortgages at a rate of 2.5 percentage points below prime.

DBS's  three-month Hibor rate was 4.44 per cent yesterday.

The latest offer, aimed only at new customers, will run until the end  of next month.



DBS Bank steps into home loan war with new rate plan