Hongkong and Shanghai Banking Corp, the largest retail bank in the city, and Citibank said they would raise mortgage rates to new homebuyers by 25 basis points from today.
Almost all major commercial banks in Hong Kong have raised their mortgage rates during the past two weeks, except Bank of East Asia.
For HSBC's Hong Kong unit, the new mortgage rate for new homebuyers with loan amounts of HK$1.5 million or more will be 2.75 per cent, up 25 basis points. The cash rebate remains at 0.5 per cent.
For new homebuyers with loan amounts below HK$1.5 million, the new mortgage rate will be raised to 3 per cent, from 2.75 per cent. The cash rebate remains at 0.2 per cent.
Separately, Citibank also announced it was increasing its mortgage rate on new homebuyers to 2.75 per cent, up 25 basis points, while its cash rebate stays at 0.8 per cent.
For new home loans made under the more flexible Home Smart repayment scheme, the mortgage interest rate will increase 30 basis points to 2.9 per cent. The cash rebate of 0.5 per cent remains unchanged.