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08-10-2006, 11:25 PM
| | Registered User | | Join Date: Aug 2006
Posts: 26
| | | Hong Kong Mortgages
How easy is it to get a 90-95% mortgage in Hong Kong? I already have mortaged property in the city, and I'm considering buying again, but would like to keep my initial outlay low - hence the desire for a 90% mortgage.
Secondly, what are good offers at the moment? Is P-2.75% reasonable, or should I expect more or less? Are there fixed rate mortgages available, and if so at what rate?
Thanks for any help given. | |
08-10-2006, 11:58 PM
| | Registered User | | Join Date: May 2006 Location: Tai Po
Posts: 615
| | | Once you move over 70% the mortgage will have to be OK'd by the Mortgage association (can't remember their exact name). So even if the bank is willing to lend it could still be vetoed by the mortgages asscoiation (that is my understanding).
You will never get this type of mortgage on a village property, it is normally only available on specific types of property such as an apartment in a managed complex.
Also, once you take on this type of mortgage you are legally bound to pay an insurance premium, which basically covers the banks investment in your property. I think this is equal to 3% of the property value? Need to check though. The important thing to remember is that this premium covers the bank's investment and not yours.
Your best bet is to just go to the bank and just ask, they can do a free evaluation on the property (as you will already know being a property owner) and discuss feasibility given your monthly income etc.
P - 2.75 is the rate we got. Seems reasonable to me. Not sure that fixed rate mortgages are available on 90% lending. I know for a fact that some 'offers' - such as no penalty for early redemption, bi-monthly payments, ability to pay off lump sums etc do not kick in until the outstanding value of the mortgage has dropped back to 70% or lower. But this may just be HSBCs policy (with whom we have our mortgage).
Last edited by Pekkerhead : 09-10-2006 at 12:00 AM.
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08-12-2006, 01:11 PM
| | Registered User | | Join Date: Aug 2005 Location: Kowloon
Posts: 231
| | | Do they even have fixed rate mortgages in Hong Kong? I popped into my local Hang Seng bank today and the lady said that all mortgage rates in HK are floating - either linked to HIBOR or Prime - and that no banks offered fixed rates. Is that true? | |
08-12-2006, 01:15 PM
| | Registered User | | Join Date: Nov 2005 Location: HKIsland for now...
Posts: 1,810
| | | first time hearing that, but technically having a fixed rate mortage is not difficult. the difficulty comes when you want to refinance this fixed rate mortage. if the market had gone against you (i.e. that's why you want to refinance your mortage), the cost of refinancing it would be equivalent to how much you can make out of doing the refinancing.
so i guess that's why nobody is keen to give you a 20 or 30 year fixed rate mortage as it would be very problematic and reputationally bad when client complain subsequently why they are charged so high to break the mortage. | |
08-12-2006, 05:35 PM
|  | Resident Peacekeeper | | Join Date: Apr 2003 Location: Pokfulam Age: 40
Posts: 10,761
| | >> they can do a free evaluation on the property (as you will already
>> know being a property owner) http://www.hsbc.com.hk/1/2/hk/mortgages/valuation | |
08-12-2006, 06:00 PM
|  | Registered User | | Join Date: Jul 2004 Age: 32
Posts: 588
| | | Err.. KIA, that answer refers to which question!!!!.. Hmmm.. Is it Friday evening effect on your side or my side!! ;-) | |
08-12-2006, 06:26 PM
| | Resident Peacekeeper | | Join Date: Apr 2003 Location: Pokfulam Age: 40
Posts: 10,761
| | | Nivant, that was in reference to a comment that one needs to approach a bank for a free valuation. | |
13-01-2007, 06:04 PM
| | Registered User | | Join Date: Aug 2006
Posts: 26
| | | Changing Mortgages
Thanks for the above replies. A further question.
If I have a mortgage with Bank A, and another mortgage with Bank B, and Bank A does not know about Bank B and vice versa, is it possible for Bank A to find out about my mortgage with Bank B (or vice versa?)
If I want to change my mortgage provider from Bank A to Bank C, do I have to inform Bank C about my mortgage with Bank B? If I don't, will Bank C be able to find out about my mortgage with Bank B? If they do find out, what are the possible penalties for me if I have neglected to tell them?
Hope above is not too complicated and thanks in advance for any help. | |
13-01-2007, 06:09 PM
| | Resident Peacekeeper | | Join Date: Apr 2003 Location: Pokfulam Age: 40
Posts: 10,761
| | | You cannot have two mortages on a property. The mortage is registered with the lands department and the bank holds the title papers. | |
13-01-2007, 06:23 PM
| | Registered User | | Join Date: Aug 2006
Posts: 26
| | | These are different properties.
Have a mortgage with Bank A on property A.
Have a mortgage with Bank B on property B.
Want to change Bank A to Bank C (better rate) but don't want Bank C to know about property B / mortgage B (will affect my chance of borrowing).
Therefore can Bank C find out about property B if I don't tell them about it? | | Tools | Search | | | | | Rate This Thread | | | All times are GMT +8. The time now is 05:38 PM. | |
