It is rumored that large banks will significantly adjust the H-mortgage cap interest rate next Monday (September 18), raising interest rates by 0.5% in disguise. As soon as the news came out, it caused widespread discussion in the market. After all, the current interest rate level is much higher than before the interest rate hike cycle. With this increase of 0.5%, the actual annual interest rate is expected to rise sharply to 4.125%. At the same time, it is rumored that the cash rebate rate will also be significantly reduced simultaneously, from a maximum of nearly 3% to a maximum of only 2% cash rebate. Since the adjusted interest rate has a direct impact on new mortgages and remortgages, a meeting will be needed in the short term. What should mortgage applicants who want to remortgage pay attention to?
It is said that large banks suddenly reported a sharp increase in interest rates, mainly due to the increase in mortgage funding costs. Due to the rapid adjustment of the Hong Kong property market since the second half of last year, property prices have been declining, and residential transactions have been weak. It was originally expected that property prices could further stabilize or rise in the first half of this year. In order to attract customers to participate in the interest rate hike cycle, banks have continued to Push up the cash rebate ratio. However, when the cash rebate is increased to the maximum of 3%, the actual annual interest rate is only 3.625%. For banks, the mortgage cost is very high. This time, the interest rate is raised while the cash rebate ratio is adjusted. It can be said that the "preferential period" has ended.
The running pressure in the second half of the year has been digested
On the other hand, the second half of the year has always been the "off season" for bank mortgages. Because the pressure from banks to "run the numbers" has already been absorbed in the first half of the year when they launched additional discounts, some banks will begin to be less willing to underwrite mortgages and will We are preparing for deployment in the coming year. Therefore, it is normal to reduce cash rebates while raising interest rates this time.
In addition, with the U.S. Federal Reserve having the opportunity to continue raising interest rates, it is understandable for banks to raise interest rates at this time. Under the current circumstances, those who need to apply for mortgage refinancing and remortgage, as long as they submit their application to the bank in time before the interest rate increase, they may have the opportunity to use the interest rate before the interest rate increase, which is 3.625%, instead of 4.125%. In addition, the cash rebate can also be calculated up to 3% instead of the adjusted maximum of 2%, so applicants must act quickly!
Submit an application to lock in interest rates before interest rate increases
If you are a first-hand uncompleted property buyer, as long as you apply for a mortgage before September 30, you will have the opportunity to achieve the current interest rate of more than 3% and receive a cash rebate of up to 3%. If you are a buyer of a non-complete property, such as a second-hand property, you must apply before Sunday (September 17) to have a chance to get the "old plan".
If you want to apply for a mortgage to lock in the interest rate, you need to go to at least three banks as soon as possible, including large or small and medium-sized banks, to inquire about the mortgage, so as to compare the interest rate plans and rebate details provided by each bank. At the same time, sufficient documents must be prepared, such as income certificate, identity document, address certificate, tax bill, etc. If you want to reduce communication errors throughout the process and avoid delaying the application time, it is recommended that you contact a reputable mortgage referral company for enquiries. Especially for novice buyers, with the help of professionals to answer mortgage questions and help prepare documents, the mortgage application process will be smoother and faster, and at the same time, they can also receive additional rebates, killing two birds with one stone. The conclusion is that if you can apply for a mortgage before interest rates rise, you still have a chance to enjoy the current lower interest rates and higher cash rebate mortgage plans. Remember to seize the time.