Top 10 Best Fixed vs Floating Rate Mortgage Options in Hong Kong

When does a fixed-rate mortgage break even vs floating?

Break-even depends on how long the fixed rate stays lower than the floating rate (typically prime-linked). Most fixed rates on this list lock in for 1–3 years.

Is a 3-year fixed worth it over a 1-year?

Longer lock-ins (e.g., Hang Seng 1-Year Fixed at 3.55%) offer flexibility but may cost more upfront. 3-year options provide more stability if rates rise.

What is prime-based floating?

Floating rates track Hong Kong's Best Lending Rate or HIBOR. When prime falls, your payments decrease; when it rises, they increase.

## What is the difference between a fixed-rate and a floating-rate mortgage in Hong Kong?

A fixed-rate mortgage keeps the same interest rate for a set period (commonly 1, 2, or 3 years in Hong Kong). Your monthly repayment does not change during that lock-in. A floating-rate mortgage is tied to the bank's prime rate and moves up or down when the prime rate changes, so your repayment can shift mid-loan.

## When does a fixed rate usually make sense?

A fixed rate generally makes sense when you want predictable payments, when you expect rates to rise, or when you plan to stay in the property through the entire lock-in period so you do not pay an early repayment penalty.

## When does a floating rate usually make sense?

A floating rate often makes sense when you expect rates to fall, when you plan to sell or refinance before the fixed period ends, or when you want a lower starting rate than the fixed offers available.

## What is a break-even period?

The break-even period is the point at which the savings from choosing one structure over another outweigh the early repayment fee you would pay to switch. Shorter break-even periods are friendlier to borrowers who may move or refinance.

## How current is this list?

Every offer on this list was re-verified in April 2026. Rates, lock-in terms, and conditions at Hong Kong banks change frequently, so always confirm the latest numbers with the lender before applying.