HSBC (00005) increases mortgage cash rebates. Analysts believe this will have a positive impact on the Hong Kong property market.

There is news that HSBC HOLDINGS (00005) will offer cash rebates for new mortgages of HK$1 million or more, raising the rate from 0.1% to 0.2%. For loan amounts of HK$10 million, the rebate can increase to 0.58%, which is the highest among major banks. Manson Ma, Chief Vice President of Referral Mortgage Brokerage Services, said that the Hong Kong interbank offered rate has been declining since the end of May, and even though it has risen recently, it is still relatively low. This has eased the funding cost pressure for some banks, allowing for adjustments to mortgage-related offers that benefit new homebuyers and support the Hong Kong property market positively. In addition, Hong Kong property prices have risen for two consecutive months, and with interest rates remaining low, banks are becoming more positive towards mortgage business. It is expected that other banks will have the opportunity to adjust their mortgage-related offers to compete for mortgage business in the second half of the year. Currently, each bank may have different mortgage offerings and benefits, Ma suggests that new mortgage customers should compare offerings from at least three banks to find the most suitable and advantageous mortgage provider. According to research from the Referral Mortgage Brokerage Services and the Land Registry, the market share of the four major banks in the Hong Kong property market increased by 9.3% from 65.6% in the previous month to 74.9% in June 2025. Ma said that currently, two major banks have increased their cash rebates for mortgages in order to compete for second-half mortgage business, and it is expected that the market share of major banks may have room to increase.