HSBC announced that starting today, it will increase the cap rate of the interbank mortgage (H mortgage) to the prime interest rate (P) minus 2.25%. Based on the current P of the bank is 5%, that is, the H mortgage rate will be increased to 2.75%.
Wang Meifeng, managing director of Centaline Mortgage, pointed out that, based on the fact that the leading banks adjust the interest rate as an indicator, it is expected that other banks will follow suit and increase the cap rate of newly-made H mortgages.
Wang Meifeng said that under the interest rate hike cycle of rising US interest rates and decreasing bank balances in recent months, the one-month Hong Kong dollar interest rate related to real estate mortgages has risen from about 0.15% at the beginning of the year to 1.9% now.
The H-margin interest rate hit the cap rate at the end of July and subsequently increased, resulting in a gap of 0.7% between the H-margin rate and the cap rate (the H-margin rate has reached 3.2%, which is 0.7% higher than the original cap rate), reflecting Banks' funding costs continue to rise and they are under increasing pressure from rising interest rates.
Since the bank will bear the pressure of rising capital costs and interest rates after the H-press interest rate hits the cap rate, the bank will increase the cap rate of the newly-created H-press to ease the pressure on interest rate hikes.
Wang Meifeng said that this adjustment is only affected by the new mortgage applicants of the relevant banks, and the old mortgage customers who are already mortgaged will not be affected. For new H mortgage customers, the H mortgage cap rate will be increased from 2.5% to After 2.75%, based on the repayment period of 30 years, the monthly payment for every 1 million yuan of the mortgage amount will increase by 131 yuan, an increase of 3.3%.
Based on the current average mortgage amount of about $5 million, the monthly payment will increase by $656, or 3.3%.
Wang Meifeng said that in the past, in the interest rate hike cycle, the bank raised the H cap rate before adding P. During the interest rate hike cycle in 2018, the one-month interest rate from July to August rose to 1.8%, and the bank added P. The pressure increased, coupled with the fact that the cap rate of H was relatively low at 2.15% at that time, the contrasting interest rate had risen to 1.8%, and the pressure on the interest margin was relatively large. Therefore, at that time, the bank successively raised the cap rate of H by 0.1%, and then In September, P was officially raised by 0.125%.
On the other hand, the bank also launched a first-year fixed-rate mortgage plan with a fixed annual interest rate of 2.75%.
Wang Meifeng said that the introduction of mortgage plans with low interest rate and fixed interest rate protection by banks during the interest rate hike cycle will help increase market competitiveness. The interest rate hike will be imminent this year, and the prime interest rate may be raised during the quarter, and users can lock in the first year. The interest rate is 2.75% and the contribution amount remains unchanged, and the plan is different from the traditional fixed interest rate premium with a higher interest rate. The short fixed interest period is also relatively flexible, which is expected to be welcomed by users; it is expected that other banks will follow suit. Fixed rate mortgage plan, and will push up the market fixed mortgage utilization rate.
When talking about when to adjust the P rate, Wang Meifeng pointed out that P is almost ready for an upward adjustment, especially when the one-month interest rate moves to 2%, and the bank balance is reduced to less than 100 billion yuan, it is believed that P will be the fastest in Raised in Season 3.
Since banks generally do not unilaterally increase P but raise interest rates of deposits and loans, especially large benchmark banks will also take into account the rising cost of raising interest rates. Therefore, the actual time to increase P depends on the bank's measurement of the cost of capital.
HSBC raises H by 0.25% cap rate Zhuang Jinhui: The number of repayments is expected to decrease by 40% to 50% Effective today, Goldman Sachs expects the Bank of Hong Kong to raise P interest rates for the first time this month for the second time or in December
