Hong Kong Mortgage Costs Spike With 97% on Floating Rates
- About 97% of new mortgages are linked to interbank rates
- City hiked base rates for fifth time this year alongside Fed
Sept. 21: Hong Kong Home Prices Set for 5-Year Low
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Almost all homebuyers in the world’s least affordable housing market are tied to a floating interest rate, making the city’s property market among the most vulnerable to tightening monetary policies.
Nearly 97% of mortgages in Hong Kong are tied to Hibor, the city’s benchmark interbank rate, according to July data for new loans by the Hong Kong Monetary Authority. This is likely one of the highest in the world, and compares with nearly 17% in the UK and more than 70% in Japan.