HK's home-loan war poised to heat up

Hong Kong

THE price war in Hong Kong's home-loan market is poised to heat up, according to the city's top mortgage lender.

Even if the US Federal Reserve raises borrowing costs in December, the excess funds in Hong Kong's financial system will allow banks trying to stem slowing loan growth to keep undercutting each other on mortgages to attract borrowers, said Yip Wai-man, BOC Hong Kong (Holdings) Ltd's deputy general manager of personal banking and wealth management.