Jun 28
H-Plan vs. P-Plan: Is your mortgage rate hovering around 4%? Switching to a P-Plan could cut it to 3.25%. Over the past decade, more than 90% of new mortgage applicants have opted for H-Plan mortgages, as HIBOR-linked rates were generally lower than P-Plan rates. However, data from June 2026 shows that the P-Plan rates offered by the five major banks (3.25%–3.50%) are now consistently lower than H-Plan rates (3.90%–4.26%). Rather than framing this as a "structural shift," this article examines the phenomenon through the lens of monetary policy transmission mechanisms to explain its causes and calculates the interest rate differential based on actual holding periods. https://finkit.hk/learn/mortgage/h-vs-p
