Anyone know by how much the mortgage interest rates in HK fluctuate? We're considering buying a property in Happy Valley, and at the current rates, it is easily affordable. However, if the rates rise to say 6% - 8% or more, we would be in a very difficult position.
I can't figure out how volatile the interest rates in HK are, so I'd like to know if rates going that high in the next 5 years is a real possibility or would that be an extreme/rare situation?
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Is there a site where we can actually see the year to year fluctuation? I'd like to know if the 11% was a short term spike or if rates gradually built up to that. In other words, I'd like to assess the level of risk involved in purchasing an adjustable rate mortgage.
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sxc
17 yrs ago
HK interest rates move pretty much in line with the US interest rates due to the pegging of the HKD to USD. So if you know anything about volatility in US interest rates, HK rates will follow/
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Thanks to all the replies. I'm not too familiar with the US interest rates either. Everyone I talk to seems to think that I should be more worried about a possible correction in real estate prices rather than interest rates. But the way I see it, we can wait out any downturn in the market. But if interest rates shoot up, we won't be able to wait out the market as the monthly payments would become much too high.
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Interest rates in Hong Kong are typically not fixed and therefore could very well rise with the strengthening of the US dollar which will certainly happen outside the next 8-12 months. There are strategies that recognize this – consult a professional financial advisor to have you explain. By the way a bank teller selling hedge funds and cashing cheques, will have no clue!
Asia Pacific Investment Advisors Limited
16th Floor Tak Shing House
20 Des Voeux Road Central
Central
Hong Kong
email : info@apg-hk.com
www.apg-hk.com
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