hi all,
i'd bought a property under my name in 2009 and we're planning to buy a second property under my husband's name but he does not have a secure job like mine (he's in the construction business).
when i went to BEA, they told me that i need to put 25% down-payment if i want the second property under my name so i thought maybe we can buy the second property with 10% down-payment on hubby's name.
i guess the issue here is that we're supposed to occupy the flats for our "personal" use so if we get the second property under hubby's name, will the bank/hkmc question why i'm living in one flat and hubby in another flat? and has anyone successfully obtained a mortgage with a non-regular income (hkmc website says they can but i rather be sure)?
any input is appreciated.
thanks!
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Only 25pc for second property? Thought it was 50pc.
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Have you paid off your first proprty?
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kissy.missy and her husband are bullish on property, they're willing to get a new one at 10% down. It seems they're not willing to do so at 25% (they need to get extra funding).
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The bank will know anout their other mortgage and they will have to meet HKMA requiremts
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OP, please clarify.
Is it right that you have an outstanding mortgage with your current residence (bought in 2009, so most probably not yet fully paid in just 3-4 years). And BEA (already knows about your mortgage) is asking you to put in 25% downpayment if you are to buy a new one. You're thinking that if the new property is going to be purchased in your husband's name (first time purchaser, can get extra funding up to 90% of property buying price) you will only need 10%?
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yes, punter. i've saved up for a 10% down-payment on a $3M property. sorry if my post wasn't clear. do you think i should just sell the current property and buy another one? or wait for my piggy bank to grow so that i can put a 25% down-payment instead?
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If you've followed the other property threads, you should have a good idea on where frequent members stand (Bulls and bears).
If you already have your own flat, why do you need a new one? Is it for family use (e.g. bigger, better, etc.), or is it for investment? If for investment, paying 10% down will make it risky. (Risk can go either way, if your property value moves up, you gain more. If property value goes down and you really need to sell, you lose more).
If it's because of a need, then you're just "upgrading" and should be okay.
Another option that is not very popular is to cash out now, rent, wait for prices to come down, then buy. (This is not an investment advice. The worst case scenario in this strategy is when inflation sets in and your cash loses value relative to a property. The best case scenario is you've sold high and then can buy low.)
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I'm pretty sure you need to put down 50pc for an investment flat now.
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It's a 3M property, so 50% is not necessary. The OP mentioned that BEA told her personally (I presume) she needed 25%.
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"...has anyone successfully obtained a mortgage with a non-regular income "
Sure. Several.
But we made down payments of 30-40%, which I believe is prudent in this sort of market. I would not over-gear, since rates can rise.
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I thought all second properties were 50%
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My purchases were some time ago, but we are talking about using the husband to buy one property, and the wife to buy another.
Relating to that situation, this remark is current:
"...down payments of 30-40%, I believe are prudent in this sort of market.
I would not over-gear, since rates can rise."
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thanks for all the comments - very helpful! BEA gave me the current mortgage in 2009 with a 10% down-payment so they told me that i will need a 25% (they didn't say 50%) down-payment for a second property under my name. that's why i thought i'd buy the second one under my husband's name as a first time buyer with a 10% down-payment, but as LGMV mentioned that the banks would know about my current mortgage (even though buying under husband's name), they would ask for 25%+ down-payment.
anyway, seems like i better save up more and get the second property on a 25%+.
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Huh. This whole thing is very confusing for me.
A) 10% and not 30% for a first time home owner mortgage?
B) 25% and not 50% for a second 'investment' mortgage?
C) Since you guys are married, isn't it an 'investment' mortgage no matter what?
Confused..
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It's 30% Elsdon (from a bank), plus the borrower will get extra funding from HKMC. In the point of view of the borrower, he only paid 10% downpayment. The extra 20% will carry a higher rate.
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punter,
I know about the 90% mortgages.. but you can still get 90% mortgages these days? I thought those were done..
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Actually, according to Loyd almost all HK mortgages are fully paid. There must be only a few of these out there.
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A few years ago, the banks were happy to lend 70%.
But when I asked for the 10th mortgage, they asked me to put down 40%, which I did.
But I got the message and stopped buying
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