Posted by
ebow3d
16 yrs ago
I know this question must have been asked here before, but anyway, I don't seem to be able to find much info on current interest rates in HK
What knid of interest rate can I expect to pay?
Some details:
1. I will propably only buy by the end of the year.
2. I'd be looking at something around HK$2.5 - HK$3mil - maybe even less.
3. Deposit of HK$500k.
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Anyone??
I'm sure there must be people here with mortgage loans. :}
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Cool thanks.
May I ask where do you get that info from? I have been looking around on www and can't find any usefull info on interest rates.
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That's good news. I've been working on a rate of around 5% in my planning calcs.
On a side note, right now, here in South Africa, I'm paying 14.9%, and that's below prime.
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Good question that you have posted for mortgage loan. I will recommend to go for DBS bank mortgage loan, which has structured it's interest rates based on Singapore Interbank Offered Rate (SIBOR)-pegged loans. It is the safest bank for people looking for Mortgage Loans. Why don't you check it out at their website.
http://www.dbs.com/sg/personal/loans/property/managedmortgage/default.aspx
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If you intend to live in your flat (and not rent it out) then HSBC will give you Prime rate - 3%. The Prime Rate at HSBC is only 5% (which is lower than some banks) so your mortgage rate will only be 2%. It's possible to get a lower rate with Hibor-linked mortgages but there will be a cap at Prime minus 2.5%. I prefer the plain and simple Prime minus 3 as the repayment period is over 25 years. With mortgages, it's pretty simple. HSBC, bank of China and DBS. Personally I prefer HSBC because they have more types of mortgages and you can extend the repayment period if rates go up.
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HSBC is the most flexible and the best if you have international banking issues (i..e transfers and assets in other countries).
They don't need to resort to little tricks to entice customers like HIBOR etc, which will end up costing the customer more over the long term with greater risk.
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Then why did they bring a HIBOR product to market last month?
A HIBOR loan is not a trick, it's a choice... one that with good timing and a good cap can be very effective.
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Ted. You are right. But iHibor-linked mortgages are designed to benefit the bank in the long term and not the customer. If you want to flip your property, then maybe it's a good idea.
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Lloyd... everything a bank sells is designed to benefit the bank in the long term. The trick is finding the product that does best for you.
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Yes, you are right. However, over 25 years it's more likely you will lose with a Hibor-linked mortgage than a straight-forward Prime-linked one. It just means you have to pay more up front at the moment with a Prime. The bank will claw back the money when Hibor rises. If you intend to sell in the next 3 years or so, then Hibor-linked is probably better.
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You've answered your own question Ted. HSBC only had to bring in a HIBOR loan last month just to offer the choice to customers. But they could resist it for such a long time, they didn't have to be a first market mover to entice new customers to their existing Prime mortgage products.
HIBOR is for flippers, Prime is people who want stability and generally going to own it for more than 5 years. But the banks doing HIBOR don't market it in this way. They basically just point to the number, and nudge you to choose HIBOR because HIBOR is going to end up way more profitable for them than Prime especially when they can screw you on the Prime cap one day in the near future.
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"Miss Venezeula"... I contacted HSBC just last week and they didn't offer me Prime minus 3, even though I specifically asked about it. How recent is your information?
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Slammy, either your loan amount is too small or they just don't want to give you the best deal off the bat. Keep negotiating.
Perhaps also you are not a HSBC Premier customer.
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the HIBOR can come with a "prime minus x" cap.
you could always refinance if the HIBOR went crazy, but the cap should give some protection.
most refinance penalties are only valid for 1 or 2 years also.
Can't see too many downsides to the HIBOR.
Not sure how the bank will gain over the long term as was stated.
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Hi Artful Dodger,
My husband is a premier customer and he asked about the deal. But perhaps my $2 million loan amount is too small. HSBC never care about "small potatoes"...
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I am about to start looking around for the best deal to re-mortgage my property. Can anyone who has taken a mortgage recently give me an idea of what is being offered at the moment?
I would like to be armed with as much info as possible before I walk in the door.
Thanks in advance.
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Here's a chart showing 1month Hibor:
http://www.bloomberg.com/apps/chart?h=152&w=240&range=1y&type=gp_line&cfg=BQuote.xml&ticks=HIHD01M%3AIND
Notice anything?
It is up from 5bp to 22bp.
Still cheap, but a strong trend has been evident in recent weeks
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190k
14 yrs ago
I got P-2 for a re-mortgage last month with hang Seng Bank
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I am planning to buy a property for which I need a loan. I have some savings but still the loan is required so while searching for the loan consultant I came through this, Does anyone here knows about this?
http://mortgageamigo.com/
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(from State of HK Market thread)
CONFUSION? - Or Opportunity?
Bulls and Bears can both find some solace in the SCMP and HKS these days
BEARS might like this:
"Reacting to the negative sentiment, some wary local property investors had begun offering discounts of 5 to 10 percent on homes."
- Wed. SCMP, P1
"Stocks turmoil as new panic hits US, Europe."
- Thu. HKS, Pg1
BULLS might like these:
"... but there were no signs so far of bigger foreign investors seeking to sell their residential or commercial properties at discounted prices."
- Wed. SCMP, P1 (second part of sentence, above)
"Hong Kong is the number one destination for international businesses."
- Wed. SCMP, P1 (same article)
"Rents for luxury properties in Hong Kong have grown at twice the rate of the mass market thsi year as prospective buyers opt to lease instead..."
"...Rents for luxury residential flats had risen between 2pc and 3pc a month this year, compared with rises of between 1pc and 1.5pc in the mass market."
"Owners were now asking for rent increases of between 20 pc and 30 pc... and some expatriates were still willing to pay because they did not want to relocate."
- Wed. SCMP, P2
(Fed's decision)
"US Fed's low risk pledge is a double-edge prospect for HK"
"Hong Kong automatically inherits US interest rates. So if the Fed is going to keep its short term rate at zero for another two years, it means HK's own benchmark one month Hibor rate will stay someshere close to its current 0.22 per cent level until at least the middle of 2013. That's good news for anyone paying off a mortgage... This will support Hong Kong property prices."
- Thu. SCMP Monitor column, B10
YOU PAY YOUR MONEY, and you take your choice
== == ==
Stable low rates, combined with rising rents are likely to bring buyers back in, once the period of negative sentiment has passed. Perhaps we will need to see a rally in stocks first?
With rental yields at 3% (and rising) and mortgage rates near 1%, it will not take too long to cover the transaction costs, and most folks will like a two year window (if the Fed does indeed hold rates down so long)
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The best place to retrieve these information is from a financial price comparison site called http://www.moneymoneyhome.com.hk. They have all updated mortgage rates in town!
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