HKMC Fixed-Adjustable Rate Mortgage

The FARM is operated by The Hong Kong Mortgage Corporation Limited (“HKMC”) and aimed to provide an alternative financing option to homebuyers for mitigating their risks arising from interest rate volatility.
The FARM is first offered through the Bank, and it will then be sold to HKMC after drawdown under the FARM scheme. The Bank is not the ultimate lender nor the servicer of FARM. HKMC will be the ultimate lender. The Bank’s estate, right, title, interest and benefit in relation to the FARM (including the benefit of any related Guarantee) will thus be transferred and assigned by the Bank to HKMC after drawdown. Any further advance on FARM will be subject to the policies and approval of the HKMC.
The maximum loan amount of each private residential mortgage is HK$10 million. At the end of the initial fixed-rate period, the borrowers may either re-fix the mortgage rate under fixed-rate mortgages under FARM or convert the mortgage to a floating rate loan of Prime Rate quoted by HKMC minus 2.35%. For reference, the current floating mortgage rate is the Hong Kong Prime Rate minus 2.35% per annum as of 28 Jun 2024. The Hong Kong Prime Rate will be determined by the HKMC from time to time.
Borrowers will not be required to meet the stress testing against interest rate rise, but the current debt-to-income ratio will still be applicable.
The Bank may receive incentive payment from HKMC.

The above information is for reference only and not complete. For details, please contact our Mortgage Master or visit any one of our branches. The Bank and HKMC reserve the right to amend and/or withhold the above offers, and the relevant terms and conditions at its discretion and without giving prior notice.

Pilot Scheme offers fixed interest rate period of 10, 15 and 20 years for mitigating your risk due to rate volatility.