HSBC Hangzhou Cuts Mortgage Rates to 2.76% for First and Second Homes

Some banks have cut mortgage rates to the "2 percent range." A loan officer at HSBC's branch in Gongshu District, Hangzhou, said the bank's minimum mortgage rate for both first and second homes with maturities over five years is 2.76%, which is 74 basis points below the five-year loan prime rate (LPR) of 3.5%. The reduction is written into the loan contract.

Recently, homebuyers on social media have posted screenshots of mortgage rates in the "2 percent range." A survey found that such loans are mostly existing five-year mortgages.

On August 6, visits and phone inquiries to multiple banks in Beijing, Guangzhou, and Hangzhou showed that most banks still offer mortgage rates of 3% or above. Some foreign banks can provide housing loans with rates below 2.8%, but they impose multiple thresholds such as client qualifications and partner channels.

Some banks said that although they cannot lower loan rates, they can offer homebuyers certain price discounts through partner property projects.