High advance mortgage - Letting out.

The title says it all really. I'm thinking of buying a place using a 95% Mortgage (bank plus HKMC), but may let it out at a later date (within 12 months). Strictly speaking, I know this is not allowed as the regs for the HKMC state sole occupancy, but do any of you guys, or rather know of any guys, that do this in hk? Do the banks really check up on you and send you random letters asking for evidence of your residential status? They claim that I would have to pay off the enitre high advance portion of the loan in one, if I did not live there....

Would you have sufficient funds for the down payment, if a bank gave you 90% financing on the property appraisal price?

Yes.

Try calling Ken Ng at 2576-6077. He is with the Shanghai Commercial Bank Ltd in Causeway Bay.


A few years ago, he arranged me a 70% mortgage (Maxiumum percentage allowed by law), plus another 20% personal loan with pretty close interest rate to the mortage rate.


He recommended me this package of financing, and helped me save the high premium cost for the insurance by HKMC.


No need to mention that you will be renting out the flat in the future, unless you want to pay higher interest rate. You will also be fine when renting out this flat through real estate agents, as majority of landlords do not have bank consent to rent out the property.


Just make sure you pay the stamp duty for the tenancy agreement when you do lease the unit in future, otherwise your rental contract would not be legal. And a hard time to sue you tenant in court incase of non payment of rent or damages caused to your unit during tenancy.


Good Luck and enjoy your new apartment. Remember to do your instant and free property appraisals at www.hangseng.com.hk and www.hsbc.com.hk before puting your offer in writing through the real estate agent. Make sure to make a lower offer than the bank appraisal price, otherwise you will have to find extra funds between the fnal buying price and bank appraisal price.

thanks robert