HSBC to Raise HK Mortgage Rates in Added Pressure on Economy
- Bank to raise cap for Hibor-linked mortgages by 50 bps
- Over 90% of city’s mortgages are linked to the floating rate
This article is for subscribers only.
HSBC Holdings Plc, the dominant lender in Hong Kong, is set to raise mortgage rates for borrowers in the Chinese territory, adding pressure on the city’s slumping property market.
The lender is raising the cap on home loans linked to the Hong Kong interbank offered rate by 0.5 percentage point, pushing rates on new loans to 4.125% from 3.625% effective Sept. 18, according to two people familiar with the move who asked not to be identified because the information is internal. Banks last raised the cap in 2022 by 25 basis points.