Hong Kong mortgage rates in May 2026: the 3.25% cap, H-plan and P-plan explained

When estimating repayments on a Hong Kong residential mortgage, the easy mistake is to treat four different numbers as one: the bank’s quote, the H-plan formula, the P-plan formula and any interest-rate cap. As of early May 2026, several public mortgage comparison tables show many new mortgage plans with a 3.25% effective rate or capped rate; however, if calculated simply as HIBOR plus the bank’s margin, some H-plan formula rates are higher than 3.25%.

For a first-pass budget, 3.25% is a reasonable reference point. For an actual application, it is only the starting point.

Quick snapshot: what the public data shows

What to check	Publicly listed figure	How to read it
Common capped or effective rate	About 3.25%	Property.hk and Invest101 list many new mortgage plans at 3.25% as an effective or capped rate.
H-plan formula rate	About 3.742% to 3.942% in examples	28Hse shows H = 2.442%, with H + 1.30% to H + 1.50% producing mortgage annual rates of about 3.742% to 3.942%.
P-plan calculation	P - 1.75% or P - 2% can work out to about 3.25%	HSBC’s Hong Kong dollar prime rate is listed at 5.00%; public tables also show examples using P = 5.00% with P - 1.75%, or P = 5.25% with P - 2%.
Final approved rate	Not necessarily the table figure	28Hse states that its information is for reference and that bank policy and final customer approval prevail.

What does the 3.25% figure mean?

In Hong Kong mortgage shorthand, a rate described as 3.25 means 3.25% a year. In the current comparison tables, that number often appears as either the effective rate shown for a plan or the cap that limits the H-plan rate when HIBOR moves higher.

That distinction matters. A borrower looking only at the H-plan formula may see HIBOR plus a margin, while the same plan may also have a lower contractual cap. Conversely, a comparison table may show a 3.25% cap, but the bank still has to confirm the exact terms, cash rebate, penalty period and final approval result.

H-plans: HIBOR plus margin, then check the cap

An H-plan is a HIBOR-linked mortgage. HIBOR is the Hong Kong dollar interbank reference rate; the Hong Kong Association of Banks publishes Hong Kong dollar interest settlement rates daily.

Public comparison tables show many new H-plan mortgages using a formula of H + 1.30%. The Hong Kong Association of Banks listed the one-month HIBOR settlement rate at 2.44238% at 11:15 a.m. Hong Kong time on 30 April 2026. Using H + 1.30% gives about 3.74238% before applying any cap, which matches 28Hse’s example of H = 2.442%, H + 1.30% and a mortgage annual rate of 3.742%.

This is why an H-plan quote should not be judged by HIBOR alone. Invest101’s table lists multiple banks with H + 1.30% and a capped rate of 3.25%. Before comparing offers, ask which HIBOR tenor is used, what margin the bank charges and exactly how the cap applies.

P-plans: the bank’s prime rate minus a discount

A P-plan is based on a bank’s prime lending rate, less a stated discount. HSBC’s public page lists its current Hong Kong dollar prime rate at 5.00%. Property.hk shows some banks using P = 5.00% with P - 1.75%, which works out to about 3.25%; Invest101 also lists examples where P = 5.25% and the plan is P - 2%, again giving about 3.25%.

But not every P-plan lands at 3.25%. 28Hse lists a China Construction Bank example using P = 5.25% and P - 1%, producing a mortgage annual rate of 4.25%. So the right question is not just what is the P-plan rate? It is: which prime rate does this bank use, what discount applies, when was the quote updated and what terms will be approved for this borrower?

Should you use 3.25% to estimate repayments?

For rough affordability checks or an early refinancing comparison, 3.25% is a useful benchmark because multiple public comparison tables around late April and early May 2026 list many banks at that effective or capped level.

A more careful estimate should run at least two scenarios:

• H-plan scenario: use the latest relevant HIBOR, add the bank margin and then apply the cap if the plan has one.
• P-plan scenario: use the bank’s own prime rate and subtract the stated discount, such as P - 1.75%, P - 2% or another discount level.

It is also risky to assume 3.25% will remain unchanged. HIBOR settlement rates are published daily by the Hong Kong Association of Banks, while HSBC’s prime-rate page shows a record of past prime-rate adjustments.

Checklist before speaking to a bank or broker

Before choosing a mortgage plan, confirm the following:

• For an H-plan: What is H today? Is the loan linked to one-month HIBOR, three-month HIBOR or another tenor? What is the bank margin? Is there a cap?
• For a P-plan: What prime rate does the bank use? Is the discount P - 1.75%, P - 2% or something else?
• For the 3.25% figure: Is it the current effective rate, the capped rate or just a comparison-table reference?
• Cash rebate: Public comparison tables list cash-rebate fields, and the rebate can affect the overall package being compared.
• Penalty period: The tables also show penalty periods, which matter if you refinance or repay early.
• Update date and approval: Treat comparison tables as reference material and confirm the bank’s latest policy and final approval terms.

Bottom line: in early May 2026, 3.25% is a sensible starting point for reading Hong Kong residential mortgage offers. The repayment you actually face still depends on the H-plan or P-plan formula, the cap, cash rebate, penalty period and the bank’s final approval.