The Mortgage Corporation has launched a special scheme under its fixed adjustable rate mortgage programme to promote loans with fixed-rate periods from one to 10 years.

Ten banks will join it, including the Bank of China (Hong Kong), the Bank of East Asia, CCB (Asia), DBS (Hong Kong), Dah Sing Bank, Hang Seng Bank, HSBC, ICBC (Asia), Standard Chartered Bank (Hong Kong) and Wing Hang Bank.

Under the special scheme, borrowers in respect of owner-occupied properties can apply for mortgage loans for fixed-rate periods of one, two, three, five, seven and 10 years with mortgage rates of 1.25%, 1.75%, 2.35%, 3.18%, 3.58% and 3.78% per annum.

With fixed-rate mortgages borrowers can lock in a predetermined mortgage interest rate and be insulated from any volatility in interest rates during the chosen fixed-rate period.

At the end of the fixed-rate period borrowers can choose either re-fixing the mortgage rate for another term at the then prevailing fixed rates offered by the corporation, or converting the mortgage loan to a pre-committed floating rate of the corporation's prime rate minus 3% per annum.

The application period is October 27 to December 31. Loan drawdown must be completed by February 28. Interested homebuyers can contact the participating banks.