Bank Valuation

Posted by SweetSue (199 days ago)

The village house we would buy like to is almost a $1M (of the fixed price of this vendor) more than BOC/HSBC valuation for a mortgage from these banks for this house in the $6-7M range. We do want to get it but coming up with 30% and tackling this extra amount over the valuation will have us strapped to tight. Any finance suggestion in a situation like this would be appreciated.

Posted by Saikunga (199 days ago)

call mreferrals.com and see if they can find a bank that will help you out.

otherwise you just have to get the price down or suck it up. The valuation all depends on what is being sold at what price in the area. Not fair and a pretty silly way of doing things really.

Posted by walkup (199 days ago)

If it is an 'old building' then bank valuation will be somewhat lower than the market price. It is this gap which provides an opportunity for those with access to funds. What some do is to raise an HK-based mortgage on the property itself and plug the gap with a remortgage on the property back home. $1m gap on a valuation of $6-7m is not so big. HSBC can be conservative so you can follow Saikunga's advice for alternative figures....but there will still remain some gap whichever HK bank you go through.

Posted by jaswells (199 days ago)

I'm in exactly the same position and am trying to secure a mortgage on a village house for $6m. I have visited nearly 10 banks now and had valuations ranging from 3.4 - 6m. Its all been rather stressful but the best was Public Bank which can be found on Queens Rd. This is a mortgage for the full asking price and from everything I've read this is rather unusual.

Good Luck

Posted by Jalous Uranus (198 days ago)

I also have the same problem. It seems the market prices are rising and the banks are not keeping up. There's nothing one can do. Either you put up the difference yourself or wait for the property prices to cool a bit.

Posted by spaceren (198 days ago)

Ask the bank if the valuation will move upwards if you move forward - sometimes shifts a lot (>500k!). Also, valuations are changing at this time, so make sure a current one. Personally, I think a rising or falling market makes no difference, valuers seem to always put a 20-50% discount on non-estate properties.

Most banks will happily lend a tax loan at this time of year - maybe that could be a multiple that will be sufficient in the circumstances. Interest rate is more though (but less than a personal loan).

Posted by SweetSue (197 days ago)

Hi and thanks for your answers, comments and replies we will try to find a way to hopefully get it sorted with these suggestions. Another question is how to get the original floor plans of village house 12 to 15 years old to make sure where the structual walls are and renovations in the past are up to standards within building codes.

Posted by Saikunga (197 days ago)

floor plans? Hah! If there were any renovations I am certain they would not have submitted anything to anyone, let alone asked permission for anything to be changed, and as for the original floor plan - I don't think there is a central storage location for such animals.

Posted by Bayliner1901 (189 days ago)

If I am not wrong, this weekend their is some news on banks raising their allowable to 85% from 70%. If this is true, then you are in luck. Anyway, FUB_N BANK (fill in the missing letter, try to maintain Asiaxpat rule) is your best bet, I just got mine this week and they seemed to be quite flexible on lending you the price you paid, not the e-value price... give them a call, Won't hurt. Best yet they have I found them to have a very good rat and an attractive .6% cash rate and a 2K red pocket...

Posted by jaswells (189 days ago)

Hi Bayliner,

Thanks for the advise. However, are you talking about village houses? I have been busily trying to arrange a mortgage this week and havibg difficulty getting over 60%? Do you have evidence/ link to this news?

Also, we visited F**** N Bank and was told they didnt do village houses.

Regards

Posted by Bayliner1901 (189 days ago)

The news was from the "Hong Kong Economic Times", a chinese newspaper... Although I can't read Chinese that well, but I had been told by the realty agency on this....

http://www.hket.com/hketonline/app?service=page/Home

PS: My recent mortgage was for a flat, not a village home...

Posted by Saikunga (187 days ago)

We borrowed from F bank on our village house - call mreferral.com - Macky Fung is very helpful. They are loan brokers and it doesn't cost you any money up front (probably in the bank fees - but only if you take a loan through them). We could only get 70% 18months ago - it would be good news if they upped the borrowing amount though.