Bank rebate reduction will not affect citizens' entry into the market

Recently, the funding costs of banks in Hong Kong have remained high, and news has spread in the market that many large banks, including HSBC, Hang Seng and Bank of China, have significantly reduced cash rebates. This means that loan applicants for non-new mortgages (remortgages or additional mortgages) will no longer be entitled to any cash rebates, regardless of the loan amount.

Influence citizens’ willingness to enter the market

For citizens, banks' reduction in cash rebates will directly affect their willingness to enter the market. Cash rebates have always been a powerful tool to attract customers, especially for citizens who are interested in buying property or investing. Such policy changes will undoubtedly disappoint them.

Bank competition intensifies

Competition among banks will intensify as major banks cut cash rebates. In order to attract more customers, banks may introduce more preferential measures or lower loan interest rates to gain market share.

Market trends are unclear

Banks' move to cut cash rebates also reflects uncertainty about market trends. As the economic environment changes, banks may adjust corresponding policies in response to risks and pressures, which also brings more uncertainty to the public.

Citizens should manage their finances prudently

In the face of changes in banking policies, citizens should manage their finances more prudently, carefully evaluate their financial situation and risk tolerance, and choose financial products that suit them to ensure their financial security.