Short answer：A HIBOR mortgage uses the contractual HIBOR reference plus a margin and may have a prime-linked cap. A prime mortgage uses the bank’s prime rate plus or minus a margin. Prime and caps can change. Compare the same balance, term and complete fees.
Read the reference rate and reset terms
Product pages explain structures; your offer establishes the margin, cap, reset cycle and charges. HSBC’s HIBOR product and Standard Chartered’s prime-linked cap are examples, not substitutes for your contract. 滙豐：HIBOR 按揭 / HIBOR-based Mortgage; 渣打：HIBOR 按揭及 P 掛鈎上限 / HIBOR Mortgage Plan
A hypothetical rate comparison
Assume H + 1.3 percentage points, capped at P minus 2 points, with P at 5%. At H = 1.5%, the uncapped rate is 2.8%, below the 3% cap. At H = 2%, the uncapped 3.3% is limited to 3%. These are assumed inputs, not a bank quotation.
If P changes, a P-linked cap may change too. A cap today does not promise an unchanged rate throughout the loan. Actual interest and payment resets follow the contract.
Compare costs alongside rates
Hold repayment method, balance and remaining term constant, then itemise charges. A longer term can lower the monthly payment without reducing total interest.
- Reference tenor, reset date and the lender’s own prime rate.
- Rebates, clawbacks, lock-in periods and early repayment charges.
- Insurance premiums, valuation and legal fees where applicable.
- Cash reserves under lower income, higher rates or an appraisal shortfall.
Use the dated historical data on the HIBOR page and enter assumptions in the mortgage calculator. Historical HIBOR is not a live mortgage offer.
Decide using a written offer
Compare valid written terms against your expected holding period and cash flow. This guide does not predict rate-cut dates or claim one structure is always cheaper.
Questions and answers
Does a cap remove interest-rate risk?
No. A cap linked to the bank’s prime rate may change when prime changes. Check the contract.
Is a prime mortgage fixed-rate?
No. The bank can adjust prime. A fixed-rate loan is a separate contractual arrangement.
Sources and method
Sources support the specific rules described. Checklists and hypothetical calculations are editorial explanations, not measured market results or individual approvals.
Revision：Removed unsupported experience, case outcomes and statistics; corrected the topic-specific rules and limitations described above.
Scope：General information only, not personalised legal, tax, immigration, admissions or investment advice.