Zhongyuan Mortgage: Some banks have raised cash rebates, and it is believed that other banks will follow suit

According to the latest information from Zhitong Finance and Economics APP, Wang Meifeng, the Managing Director of Zhongyuan Mortgage, responded that since mid-August, banks have gradually improved their mortgage approval attitudes. Most banks have now resumed normal mortgage approval processes and pace, with some banks actively reopening their mortgage lending attitudes. Recently, some banks have raised cash rebates, increasing from zero to cash rebates of 0.1% to 0.25% of the loan amount. These rebates are approved based on factors such as customer background and loan amount, aiming to attract customers and reflect the positive and proactive mortgage lending attitudes of banks. It is believed that banks that do not offer rebates will follow suit.

She mentioned that recently, some large banks have reintroduced pre-approval mortgage services, helping potential buyers understand the percentage of mortgage approval they can obtain before purchasing a property. This helps buyers enter the market with more confidence. In addition, on August 23, the Hong Kong Monetary Authority, together with banks, publicly stated that if all documents are in order, they can provide approval results to mortgage applicants within two weeks. With banks increasing rebates, reintroducing pre-approval mortgages, setting a two-week approval target, and maintaining normal approval processes, it indicates that banks' lending attitudes have returned to normal and are gradually becoming more positive. It is believed that as the US begins to reduce interest rates in mid-September, and interest rates are expected to gradually decline from the fourth quarter to next year, banks' enthusiasm for mortgage lending will further increase, strengthening buyers' confidence in entering the market.

With the increased enthusiasm for mortgage lending by banks, Wang Meifeng believes that as the market has already anticipated the US will reduce interest rates in mid-September, the gradual decline in Hong Kong dollar interest rates can reduce the pressure on banks' funding costs. Recently, Hong Kong dollar interest rates have also been falling due to market factors.

She stated that the expectation of declining interest rates will gradually add positive factors to the property market. Buyers who have started to take advantage of the low prices have increased recently, and developers have also indicated that they will accelerate the pace of launching new projects in the short term. This is believed to help improve the positive attitude of banks towards mortgage lending. Currently, banks' attitudes towards mortgage lending are gradually becoming positive, which is expected to increase buyers' confidence in entering the market and gradually warm up the property market in the fourth quarter under the increasing positive factors