HKMA Set Minimum on Home Mortgage Rates

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  1. #11

    Join Date
    Feb 2009
    Posts
    8,280

    By the way, with plan 1 you can get an extra 0.1% cash rebate if you open a savings account and have your salary auto deposited into the savings account.

    Also with plan 1, you can link your savings account to the home loan and get extra bonus interest to offset the home loan. I think they call it 'FamilyLink'


  2. #12

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    Watch out though that "P" is something under each individual bank's control, and it does vary between banks. HIBOR isn't and doesn't.


  3. #13

    Join Date
    Feb 2009
    Posts
    8,280

    Yes thats a good point. HSBC is P-2.95% (with P=5%) and SCB is P-3.2% (with P=5.25%).

    So they are both the exact same effective rate right now.

    But out of these two options, I tend to think that SCB is better because in the future they both might have the same P rate. Who is to say that SCB's P rate will always be 0.25% higher than HSBC.

    So I think to get 3.2% below a higher P is better than getting 2.95% below a lower P, if you know what I mean. Does my logic make sense?

    Anyway, personally I have ditched the P based loan and gone with Hibor.


  4. #14

    Join Date
    Mar 2010
    Posts
    2

    Thanks for the advice and comments everyone...! Definitely helped clear up a few questions!