[jimbob70]

Just wondering why don't they just just quote the mortgage rate as a straight %. ie like in the UK? ie. 5.2% instead of P - X.XX %

Both hsbc and hang seng online mortgage calculator tools ask you to fill in the interest rate but I can only find P but not the X.XX% on their website.

any help appreciated.

[PDLM]

Because they like to have lots of different mortgage offers, and by relating them all to the bank's primary lending rate they can just make one announcement when rates change and leave everyone to work out for themselves what the actual rate is on their deal.

At the moment I think you should be able to get about P-3, although P varies between banks. HSBC's P is 7.5% at the moment so you can get mortgages which are at 4.5% for the first couple of years and a little higher later (mine goes to 4.73% I think). Plus you might be able to get some one-time incentives: HSBC recently gave me 1% of the mortgage amount as a credit on my HSBC credit card, so my effective first year rate was below 3.5%.

[jimbob70]

Thanks

Its not the working out the rates that bother me, it'd finding THE rates that could be made easier.

Like you say its around P-3 at the moment.
But WHERE did you get the -3 figure from?

Search the HSBC website under mortgage and cannot find anything.

[KnowItAll]

jimbob the "-" part is usually negotiated, depending on your record with the bank, competitive offers from other banks (you must shop around for the best deal!) and the property you want to buy.

[reinkarnation]

Do Hong kong banks provide mortgages for overseas properties?

[PDLM]

Nope.

.....

[KnowItAll]

No, since they generally cannot take them over if you default on your payment. Talk to an IFA or a specialist mortgage broker - should be able to help you with an offshore mortgage.

[reinkarnation]

oh ok. thanks. Would the rates of the offshore option be the same? I imagine higher?

[KnowItAll]

I'd imagine the local rate + some sort of premium for the risk factor.

[reinkarnation]

Oh ok thanks. would you know any place that offers it?