BOC Hong Kong raises mortgage rates by 50 basis points

BOC Hong Kong (Holdings) Ltd<2388>, in which Bank of China Ltd<601988><3988> holds a 66% stake, has raised mortgage rates by 50 basis points from today, in light of changes in interbank rates and mortgage rates in the market, sources reported.

The move came after the city's largest mortgage lender Holdings<5> unveiled on Monday a rate rise of up to 75 basis points to between 3.5% and 4.0% on concerns about the higher risk of lending.

Reportedly, Bank of East Asia<23>, ICBC (Asia)<349>, CITIC Ka Wah Bank, Chong Hing Bank<1111>, Wing Lung Bank<96> and other mid-sized lenders have already lifted mortgage rates.

Standard Chartered Bank (Hong Kong), the city's third-largest mortgage lender, had raised its mortgage rate earlier last month by 1 percentage point to between 3.25 % and 4%.