Hong Kong’s mortgage rates, at the lowest in at least 19 years, are getting close to the bottom and can rise 'quickly,' said Peter Wong, head of the local unit of HSBC Holdings Plc, the city’s biggest bank by deposits.

'If the rate rebounds, it can rebound pretty quickly,' Wong said in an interview. 'I would caution people to calculate their cash flow more carefully.'

Banks cut home-loan rates in the city by as much as 40 basis points in May to an average 2.08% as they sought to offset a drop in demand for other types of credit during the city’s worst recession in a decade. Mortgage rates are at the lowest since records began in 1990, data compiled by Hong Kong- based mReferral Mortgage Brokerage Services show.