HSBC raises rates on new Hong Kong mortgages to 4.125%: report

The raise will come into effect on 18 September.

HSBC is set to raise mortgage rates for borrowers in Hong Kong and China.

The lender is raising the cap on home loans linked to the Hong Kong interbank offered rate (HIBOR) by 0.5 percentage points, according to a report by Bloomberg. This will push rates on new loans to 4.125%, from 3.625%.

The raise will go in effect by 18 September, according to two people familiar with the matter.

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An HSBC spokesman said the bank reviews its mortgage rates regularly and makes adjustments based on prevailing market conditions.

“We have decided to revise our mortgage rate following a recent review, which takes into account a range of factors, including Hibor, our competitiveness and market pricing,” the spokesman said in a statement.

Read more from Bloomberg.