[2021 Edition] Comparison of Mortgage Interest Rates (List of Major Bank Interest Rates / Cash Rebates / Penalty Periods)
Buying a property may be the largest transaction you will make. Before arranging a mortgage loan, you need to make sure that you have the ability to repay the loan. This article will help you understand how to calculate loan amounts and compare different types of loans.
Mortgage
Mortgage of a building is to use the property as collateral and lend money beyond the initial installment to the bank to purchase the property. The bank will evaluate the amount that can be lent based on the valuation of the property, the lender's repayment ability, and loan history. If the lender is unable to repay during the loan period, the bank has the right to recover the property and auction it to offset the loaned amount.
How much can I borrow?
The bank will evaluate the maximum loan amount from various aspects, including:
 Property type (such as private buildings, village houses, public houses, etc.)
 Property valuation
 Loan history
 Lender’s repayment ability (lender’s occupation, monthly income, etc.)
 Whether the lender is buying a home for the first time
Calculate loan amount
For example, if the property value is 6 million, the bank grants 80% of the mortgage, which is 4.8 million. In other words, the applicant needs to pay 20% for the down payment, which is 1.2 million.
Repayment
The lender can choose to use H or P as the repayment interest calculation. Different banks have slightly different interest rates and cash rebates. It is recommended to make a decision after comparison. So, what are the H and P buttons?
H Press = Interbank Offered Rate (HIBOR) + interest rate established by individual banks
Since HIBOR is floating, the interest rate of H will also have the opportunity to adjust accordingly. In order to protect lenders, banks will also set a lockin interest rate ceiling to avoid the sharp rise in contributions due to rising interest rates.
P by = Prime Ratethe interest rate set by individual banks
The prime interest rate generally follows the trend of US interest rates. Although it is relatively stable, in general, the prime interest rate is higher than the interbank interest rate. So most lenders will choose H button.
Penalty period
In order to protect banks or lending institutions from losing interest due to early repayment, most institutions set up a penalty interest period and charge a handling fee to lenders who pay off their loans during the penalty interest period. Most penalty interest periods are 2 years.
pressure test
The stress test is that the bank adds 3% to the actual interest rate as a "hypothetical interest rate" when approving mortgages to assess the applicant's ability to withstand repayment when the interest rate increases.
Demonstration of stress test calculation
Property market value: 8 million
Loan amount: 6.4 million (80%)
Effective interest rate: 2.5%
Interest rate after pressure: 2.5% + 3% = 5.5%
Assumed contribution amount after pressurization: $36,339
Applicant's minimum income requirement: $72,678 (assuming that the monthly contribution is 50% with actual income)
* The upper limit of the ratio of the applicant's income level to the hypothetical contribution depends on the status of different applicants*
Mortgage product promotion 

Mortgage (as low as)  Rebate (up to)  Bank/Institution  
Flat H Press  H+1.40%  1.0%  Hang Seng Bank 
Flat P Press  2.50%  1.0%  Nanyang Commercial Bank 
Low first period, high percentage
{Firsthand secondhand and remortgage} 80% (property price up to 8.33 million) 70% (property price of 30 million or less) 
P2.6%~2.50% (50% premium can be borrowed)  0.5%  Hongya Mortgage 
Express Finance  From P+3%  N/A  Emperor Finance / ETC / JIT / Centaline Finance First Credit Finance / Sun Hung Kai Credit 
Buying and selling company equity  1.8% 2% monthly interest  N/A  Emperor Finance / Ding Pei VMS 
P press
(Firsthand/selfuse/with lease) 
P2.8%/P3% (2.452.5%)  1%  HSBC/ Hang Seng/ Bank of China/ Standard Chartered/ Citi/ Commercial/ East Asia/ Transportation/ CCB/ DBS/ Wing Lung/ Dah Sing/ CITIC (International)/Nanyang Commercial/ Chong Hing/ Dah Sing 
Home Ownership Mortgage  P2.75%/P3.0% (2.5%)  1%  Bank of China/ HSBC/ Hang Seng/ Standard Chartered/ East Asia/ Chong Hing 
The P of BOC/HSBC/Hang Seng/Chiyu/Nanyang Commercial is 5.0%;
Fubon's P is 5.375% Wing Hang's P is 5.50%; Others are 5.25% **The above information is for reference only and is subject to the approval of the relevant bank/institution 
List of Residential Property Mortgage Interest Rates 

Loan institution  Mortgage Products (Interest Rate / Cash Rebate / Penalty Period) 
HSBC
(P: 5.0%) 
Less than 6 million
(1 month) HIBOR+1.42%1.45% Cash rebate: 0.2%0.5% 6 million – 10 million (1 month) HIBOR+1.38%1.42% Cash rebate: 0.5%0.8% 10 million20 million (1 month) HIBOR+1.35% Cash rebate: 0.8%1% More than 20 million (1 month) HIBOR+1.35% Cash rebate: 1%
Interest rateUpper limit P2.50% Penalty period: 2 years **Also enjoy high interest deposit account** 
Bank of China BOC
(P: 5.0%) 
Less than 3 million
(1 month) HIBOR+1.45%1.5% Cash rebate: 0.2% 0.3% 3 million – 6 million (1 month) HIBOR+1.40% Cash rebate: 0.5% 0.8% 6 million – 10 million (1 month) HIBOR+1.35%1.4% Cash rebate: 0.8% 10 million20 million (1 month) HIBOR+1.35%1.40% Cash rebate: 0.9%1%
Interest rateUpper limit P2.50% Penalty period: 2 years **Also enjoy high interest deposit account** 
Standard Chartered Bank SCB
(P:5.25%) 
Less than 3 million
HIBOR+1.55% Upper limit P2.65% Cash rebate: 0% 3 million – 6 million HIBOR+1.5% Upper limit P2.75% Cash rebate: 0.2% 6 million – 10 million HIBOR+1.45% Upper limit P2.75% Cash rebate: 0.5% 10 million20 million HIBOR+1.45% Upper limit P2.75% Cash rebate: 0.88% HIBOR+1.45% cap P2.75% cash rebate Penalty period: 2 years **Also enjoy high interest deposit account** 
Hang Seng Bank HSB
(P:5.0%) 
1 million – 3 million
(1 month) HIBOR+1.50% Cash rebate: 0.2%0.4% 4 million – 10 million (1 month) HIBOR+1.4% Cash rebate: 0.2%0.5% 10 million20 million (1 month) HIBOR+1.45% Cash rebate: 0.8% More than 20 million (1 month) HIBOR+1.40% Cash rebate: 1%
Interest rateUpper limit P2.50% Penalty period: 2 years **Also enjoy high interest deposit account** 
Citi bank
(P:5.25%) 
1 million – 3 million
(1 month) HIBOR+1.45% Cash rebate: 0.2% 3 million – 6 million (1 month) HIBOR+1.38% Cash rebate: 0.55% 6 million – 10 million (1 month) HIBOR+1.35% Cash rebate: 0.85% More than 10 million (1 month) HIBOR+1.35% Cash rebate: 1%
Interest rateUpper limit P2.75% Penalty period: 2 years **Also enjoy high interest deposit account** 
China Construction Bank (Asia)
(P:5.25%) 
Less than 4 million
(1 month) HIBOR+1.45%1.50% Cash rebate: 0.2% – 0.5% 4 million – 10 million (1 month) HIBOR+1.35% Cash rebate‥0.5%0.8% More than 10 million (1 month) HIBOR+1.30% Cash rebate: 1%
Interest rateUpper limit P2.75% Penalty period: 2 years **Also enjoy high interest deposit account** 
Bank of Communications
Bank of Communication (P:5.25%) 
2 million – 5 million
(1 month) HIBOR+1.40% Cash rebate: 0.6% 5 million – 8 million (1 month) HIBOR+1.35% Cash rebate: 0.8% 8 million – 10 million (1 month) HIBOR+1.35% Cash rebate: 1% More than 10 million (1 month) HIBOR+1.30% Cash rebate: 1%
Interest rateUpper limit P2.75% **Set up linked deposit account** 
ICBC
(P:5.25%) 
**Open a financial account $0.8M / MIP
Less than 5 million HIBOR+1.38% Cash rebate: 0.80% Interest rateUpper limit P2.75% More than 10 million HIBOR+1.35% Cash rebate: 0.80% Interest rateUpper limit P2.75%
**Do not open a wealth management account More than 500,000 HIBOR+1.45% Cash rebate: 0.20% Interest rateUpper limit P2.5% More than 3 million HIBOR+1.4% Cash rebate: 0.60% Interest rateUpper limit P2.75% More than 5 million HIBOR+1.35% Cash rebate: 0.80% Interest rateUpper limit P2.75%
All the above penalty interest period: 3 years **Also enjoy high interest deposit account** 
Chiyu Bank
(P:5.0%) 
(1 month) HIBOR+1.45%
Less than 6 million Cash rebate: 0.8% Penalty period: 3 years More than 6 million Cash rebate: 0.6% Penalty period: 2 years Interest rateUpper limit P2.50% 
China Citic Bank
(P:5.25%) 
(1 month) HIBOR+1.50%
Interest rateUpper limit P2.75% Pplan full period P2.75% Cash rebate: 0.2% Penalty period: 2 years **Enjoy high interest deposit account** 
BEA
(P:5.25%) 
1 million – 3 million
(1 month) HIBOR+1.5% Cash rebate: 0.5% 3 million – 6 million (1 month) HIBOR+1.45% Cash rebate: 1% More than 6 million (1 month) HIBOR+1.4% Cash rebate: 1%
Interest rateUpper limit P2.75% Penalty period: 2 years 
Nanyang Commercial Bank NCB
(P:5.0%) 
(1 month) HIBOR+1.50%
Interest rateUpper limit P2.50% Cash rebate: 0.2%
P plan: P2.5% Cash rebate: 1%
Penalty period: 3 years 
China Merchants Wing Lung Bank
CMB Wing Lung Bank (P:5.25%) 
Less than 3 million
(1 month) HIBOR+1.50% Cash rebate: 0.0% Interest rateUpper limit P2.65% More than 3 million (1 month) HIBOR+1.45% Cash rebate: 0.4% More than 3 million + 1 million deposits (1 month) HIBOR+1.40% Cash rebate: 0.6% More than 6 million + 1 million deposits (1 month) HIBOR+1.35% Cash rebate: 0.8%
Interest rateUpper limit P2.75% Penalty period: 3 years **Also enjoy high interest deposit account** 
Dah Sing Bank DSB
(P:5.25%) 
P – 2.3%
Cash rebate: 0 Penalty period: 3 years **Repress to pause** 
Wing Hang Bank
(P:5.50%)

(1 month) HIBOR+1.40%
Interest rateUpper limit P2.70% Cash rebate: 0 Penalty period: 1 year P plan: P3.0% Cash rebate: 0
Penalty period: 1 year 
Wing Hang Credit
(P:5.50%)

(3 months) HIBOR+2.5%
Interest rateUpper limit P2.5% Cash rebate up to: 0.50%
Penalty period: three years (3% / 2% / 1%) 
Fubon Bank (HK)
(P:5.375%)

1 million – 3 million
(1 month) HIBOR+1.50% Cash rebate: 0.2% 3 million – 5 million (1 month) HIBOR+1.5% Cash rebate: 0.5% More than 5 million (1 month) HIBOR+1.5% Cash rebate: 0.8%
Interest rateUpper limit P2.7% (2.675%) Penalty period: 2 years **No High Interest Account** 
Public Bank
(P:5.375%)

Pplan: P2.75% for the whole period
Up to Rebate: 0.5% Penalty period: 2 years (2%/1%) 
DBS Bank
(P:5.25%)

Less than 5 million
(1 month) HIBOR+1.60% Interest rateUpper limit P2.50% Cash rebate up to: 0% 5 million – 8 million (1 month) HIBOR+1.60% Interest rateUpper limit P2.60% Cash rebate up to: 0.2% More than 8 million (1 month) HIBOR+1.50% Interest rateUpper limit P2.65% Cash rebate up to ‥ 0.2%
Penalty period: 3 years 
Chinese Finance HKCB
(P:5.25%)

As low as P2.75% for the whole period
Cash rebate: 0% Penalty period: 2 years (2%/1%) 
Public Finance
(P:5.375%)

As low as P2.50% for the whole period
Cash rebate up to: 0.5% (sale) Penalty period: 2 years (3%/2%) (Clearance: P2% for the entire period) 
(Note: The relevant mortgage terms are subject to change at any time in response to relevant bank amendments) 