Hong Kong banks are raising mortgage cash rebates to their highest levels in more than two years as they compete for a growing pool of homebuyers, betting generous incentives will help them win customers even as uncertainty over US interest rate hikes lingers.
Major lenders including Bank of China (Hong Kong), Hang Seng Bank and HSBC have increased cash rebates on selected mortgages to as much as 1.4 per cent, up from around 1.2 per cent. Some smaller banks had gone further, offering up to 1.5 per cent, the highest level since late 2023, according to Chinese media reports.
“We are not surprised to see banks offering higher mortgage rebates,” said Kathy Chan, an equity analyst at Morningstar. “Residential mortgages remain a key component of personal lending portfolios for Hong Kong banks and are generally viewed as high-quality, collateralised assets with relatively low credit risk.”
As home sales recovered, banks were stepping up competition to capture mortgage demand, while higher rebates also made fixed-rate loans more attractive for borrowers amid uncertainty over the US Federal Reserve’s rate outlook, she added.
Daniel Wong, 26, who recently got married, began searching for a home about six months ago to better understand prices before making a purchase with his wife.
