The Hong Kong Mortgage Corporation Limited
Fixed-Rate Mortgage Pilot Scheme
The Hong Kong Mortgage Corporation Limited (HKMC) has introduced a pilot scheme for fixed-rate mortgages for 10, 15 and 20 years. It aims to provide an alternative financing option to homebuyers for mitigating their risks arising from interest rate volatility, thereby enhancing banking stability in the long run. These mortgage loans can be with or without mortgage insurance under the Mortgage Insurance Programme.
The maximum loan amount of each residential mortgage is HK$10 million. At the end of the fixed-rate period, the borrowers may either re-fix the mortgage rate under the fixed-rate mortgages or convert the mortgage to a floating-rate loan. The interest rates per annum and other details of the fixed-rate mortgages Note 1 are as follows:
|Fixed-rate Period||Gross Mortgage Rate (GMR)|
Full / Partial Prepayment Penalty(% of the prepaid amount)
|Fixed Interest Rate||GMR after the Fixed-rate Period|
The then prevailing fixed mortgage rate
orHong Kong Prime Rate Note 2 minus 2.35%
1st year: 3%
2nd year: 2%3rd year: 1%
- For the applicable premium rate under the Mortgage Insurance Programme, please refer to Premium Rate Sheet - Owner-occupied Residential Property Loans.
- As announced by the HKMC from time to time.
HKMC Fixed-Rate Mortgage is Available Now!
The application period of the pilot scheme* commences on 7 May 2020 until 31 October 2020, while the last draw down date is no later than 31 December 2020. All applications should be made through the participating banks. If you have any enquiry, please contact any participating bank.
* The pilot scheme is subject to relevant terms and conditions