HSBC initiated the first round of competition in February 2006 by cutting its mortgage rates, which was followed by other rivals duplicating its actions to remain competitive.
According to The Standard citing mReferral Mortgage Brokerage Services, 2006 saw HSBC enjoy 17.6% of the mortgage market, followed by Bank of China Hong Kong (BOCHK) with a 15.9% hold on the market.
In the first half of the year, HSBC was leading the loan war but could not maintain its position and, in the last half of the year, BOCHK became the leading mortgage lender. However, overall, HSBC held the majority of home loans in Hong Kong over the course of the year.
Figures for the mortgage lending market are expected to hit HK$108 billion for 2006, almost a 25% drop from the previous year.
