The pace of interest rate hikes in the United States continued, and the one-month interest rate related to housing mortgages in Hong Kong also continued to rise, hovering at a more than two-year high recently.
Calculated by adding H plus 1.3%, which is currently used by banks, the actual interest rate of H is approaching 2.2%, which is close to the capped interest rate of 2.5%, so that property buyers can gradually feel the power of "Borrowed Mortgage".
The cost of bank funding has risen, and individual small and medium-sized banks have taken the lead in raising the upper limit of the H-press lock-in rate, from 2.5% to 2.6% to 2.725%, the first time in the past four years.
Some analysts predict that big banks will not follow the increase in the H cap in the short term, but as the pace of interest rate hikes in the United States continues, it is expected to follow in the third quarter at the earliest, and the prime interest rate P will also be raised before the end of the year.
Hang Seng Bank responded that the interest rate ceiling of the HIBOR mortgage program remains unchanged at this stage and will be reviewed from time to time in light of market conditions.
Big Bank will not raise H in the short term
According to "Hong Kong 01", there are at least two small and medium-sized banks that have raised the upper limit of H-press lock rate this time.
The original H cap of Fubon Bank was P minus 2.875%, or 2.5%. The reporter called the bank to inquire, and the staff replied that the upper limit had been raised to P minus 2.65%, that is, 2.725%, and the rate of increase was 0.225%.
In addition, according to market sources, the ceiling of DBS was raised by 0.1% to 2.6% from 2.5%.
As for large banks, there has been no move to raise the "cap rate".
Among them, Hang Seng Bank responded that the bank's mortgage interest rate will depend on factors such as market conditions, customer repayment ability and loan amount. review.
Zhuang Jinhui, CEO of Star Valley Mortgage, said that the current level of interest rates in Hong Kong is not too high, and the market situation is quiet.
HIBOR rises to 2% P with upward pressure
Zhuang Jinhui, CEO of Star Valley Mortgage Referral, said that some small and medium-sized banks have raised the H-press cap, which is estimated to be related to the fact that individual banks have already completed their internal business goals. At present, the level of Hong Kong's interest rate is not too high, and the H-value has not reached the peak of 2.5%. Market conditions are quiet, and it is believed that large banks are not under pressure to follow the upward revision in the short term.
However, he believes that as the pace of interest rate hikes in the United States continues, when the H-BOR exceeds the cap, it is expected that large banks will raise the cap at that time, and when the H-BOR rises to about 2%, the P Prime Rate will also face upward pressure. , both are expected to happen as soon as the third quarter.
Cao Deming, chief vice president of Meridian Mortgage Referral, predicts that the H mortgage will hit the cap as soon as the third quarter, and large banks will raise the cap by then, and the P prime interest rate will also be raised before the end of the year.
Fixed rate mortgage not recommended
As the H mortgage is advancing towards the cap, the Mortgage Corporation has also raised the interest rates of 10-year, 15-year and 20-year fixed-rate mortgages in July by 0.5% to 3.2%, 3.35% and 3.5% respectively, which is the largest rate since records began. Highest.
Under this circumstance, compared with H mortgage, Zhuang Jinhui does not recommend for building customers to switch to fixed-rate mortgages, not only because the H-mortgage is still lower than the fixed-rate mortgage interest rate, but also considering the current H-mortgage at the same time, the bank will provide more cash. Rebate, and mortgage deposit-linked account (mortgage link), the former rebate rate can be as high as 1.6%, the latter provides high-interest deposit discounts, so that homeowners can offset part of the pressure on interest rates.
Cao Deming, chief vice president of Meridian Mortgage Referral, also said that fixed-rate mortgages are not recommended at present, but if the interest rate in Hong Kong continues to rise with the increase in interest rates in the United States, and H mortgages exceed the level of fixed-rate mortgages, fixed-rate mortgages can be considered.
He expects that the H rate will hit the cap as soon as the third quarter, and large banks will raise the cap at that time, because if the H rate is 2.5% higher than the cap, the banks will suffer losses, and the P prime rate will also be raised before the end of the year.