HSBC Bank launches 3-year and 5-year fixed-rate mortgages, with attractive interest rate reduction periods.

HSBC Bank has launched fixed-rate mortgage plans for the first 3 years and 5 years, with a fixed rate of 3.25% for the 3-year period and 3.15% for the 5-year period. The interest rate will then be calculated based on P minus 1.25%. The Chief Deputy General Manager of mReferral Mortgage Brokerage Services, Cao Deming, stated that the newly added fixed-rate mortgage plans by HSBC Bank are attractive. Cao Deming pointed out that although many banks have recently lowered the best lending rate (P) by 0.25%, the general interest rates for new H and P plans are 3.875%, which is still higher than the rates offered by HSBC Bank for the first 3 years and 5 years by 0.625% and 0.725% respectively. In addition, Hong Kong Mortgage Securities Limited currently offers fixed-rate plans for 10 years, 15 years, and 20 years at rates of 4.99%, 5.14%, and 5.29% respectively, which are also higher than HSBC's fixed-rate plans. Cao Deming added that interest rates are likely to continue to decrease in the long term, but for now, the base rate remains at a high level. The fixed-rate plans offered by HSBC Bank are relatively stable, allowing homeowners to save on interest expenses immediately and lock in a specific rate for a designated period, reducing the risk of interest rate fluctuations and providing more options for the public, thereby contributing to the stability of the Hong Kong property market. According to the residential mortgage statistics from the Hong Kong Monetary Authority, the utilization rate for H plans was 89.8% in July, while P plans had a utilization rate of 4.6%, and fixed-rate mortgage plans have remained at 0% for 14 consecutive months. Cao Deming believes that HSBC Bank's fixed-rate plans will attract some new and existing mortgage customers, potentially leading to an increase in the utilization rate of fixed-rate plans.