Buying an old apartment

Posted by choppy (310 days ago)

Hi,
We are considering to buy an apartment in an old building, what is the criteria for the mortgage arrangement? What is the minimum % of down payment? Is it difficult to get a good mortgage from bank?? Please advice and much appreciated!!!!

Thanks!

Posted by Bruce33 (310 days ago)

on an old chinese Building you will get 70% from the Bank valuation maximum.

Posted by Havefaith (310 days ago)

Choppy,

Please note that the other concern in respect of the age of the building would be the lenght of the amortization period. Generally, banks will use 60 as the max sum of the amortization period + age of the building. For example, if the building is 40 yrs old, then the amortization period cannot exceed 20 yrs. However, in some districts banks will be very strict; and in some other districts/buildings banks may be more relaxed about it. It would best be for you to talk to your bank.

HF

Posted by C (310 days ago)

check with StanChart and Citi, they are much more flexible dealing with older bldgs, in my exp at least

Posted by walkup (310 days ago)

The essential criteria for a mortgage loan will be evidence of your ability to pay so expect to be asked for payslips and evidence of residence etc. Bank estimation of property value for mortgage advance can be shockingly low compared to the asking price but varies from bank to bank. HSBC are mean here so get a quote from Bank of China particularly if you are looking for more than 50% and who seem to be quite competitive at the moment. Don't forget to factor in the 10% 2-stage deposit if you make an offer and also the legal and stamp duty fees plus any refurb work you may need to do.

Posted by Patrick Yiu (309 days ago)

I just helped my client purchase a 1959 building in Happy Valley, through Standard Chartered Bank, 95% mortgage with 25 years repayment.

Of course, they have to check their "Blue Chip Building" list to determine the length of repayment.

If you need it, I can introduce you to the mortgage broker free of charge.

Posted by ken132 (309 days ago)

I used mReferral who were great - ask for Macky.

Posted by gwern (296 days ago)

Patrick, I am very interested in speaking to a mortgage broker about the options for borrowing for an older building. Please can you tell me how I can go about doing this.

Many Thanks

Posted by walkup (287 days ago)

gwern....just send a private message to Patrick (you can do this in control panel)

Posted by Patrick Yiu (286 days ago)

Hi Gwern, too busy these days, haven't check - in to see your question, if you still need it, you can contact Wendy Cheung of Standard Chartered Bank, her number is 91017636, just tell her you're referred by me, she will take good take of you. Good luck!

Posted by wolge (267 days ago)

Hi Patrick,

I'm interested in buying an old appartement, happy valley, sai ying pun, kennedy town. Are u an agent dealing with that? Or could u get me in contact with good agents?