why prices are shooting up!

I bet the 1% interest Dadda is paying is the HIBOR + % mortgage.

I think you can get HIBOR loan through Stardard Chartered bank

Jennifer, you already have a good deal so you can stay with it. By the way, how much is SCB charging you if you're going to refinance?

I suggest if you don't understand HIBOR or any product, you should not invest in it until you do understand.


Hibor moves daily. Well by the second actually.


Each month when you mortgage is due, the Hibor for that day is used.


If it just so happens that the Hibor spikes that day, you could be paying a higher interest rate for that month.


There are many reasons why the Hibor will spike and it's usually due to a shortage of HKD funds. e.g. an IPO, people are borrowing money and the HIBOR will increase

I just purchased a flat a month ago and will get the keys tomorrow (needs decorating tho). I did some shopping around for intrest rates and found out the competition is quite good, for consumers that is. There are different intrest rates for self use and for investors looking to rent out the apartment.

I did have the option of choosing HIBOR vs the P- rate, as they were both attractive. After further investigation, HIBOR is a good deal for the short term investors, as it will remain below the p-rate for the time being. But not sure what will happen in the next few years, Hibor could shoot up surpassing the p-rate and the cap being set soo high and it is quite a gamble. So I went with the old P-3.15 (note large banks P=5%, small banks P=5.25%) actual intrest rate is 2.10 (i'm using Chxxa Constxxxtion Bxxk). But the day after I signed the papers with CCB, HS BC called me and offered p=5% p-2.925 which would have been 2.075%, it was too late for me to change.

Don't be affraid to bargain with the banks, show them the offers you got with other banks, don't lie to them cause they will check if your offer is genuine.

Another tip: choose 2 weekly payments (if you can afford it) instead of monthly, at the end of the day it cut my 15y repament down to about 13.4y and pay 20-30K less in intrest. i will list a few rates below which i found very competative (below names mentioned is for reference only, infringement notice):

Wxxg Hxxg Bxxk

1st y fixed 1.7 then p-3.00 p=5.25

CCB

p-3.15 p=5.25

HS BC

p-2.925 p=5.00


Hibor available from CCB

3m hibor + 0.70 cap set at p-2.75 p=5.25


(oh also bargain for the cash rebate most offered 1% and penalty period)


good hunting....hope this info is usefull

Jennifer, yes that is correct if you can benifit from the HIBOR not shooting up. After all the first few years are the most expensive years, where the loan amount is the most and gradually reduced. The only fear I had, if the HIBOR suddenly shoots up at the end of the year, i would only benefit from the low intrest rate for 6 months. the remainder of my loan would then be at the a higher rate. Also bearing in mind if the HIBOR goes up, the P rate would possibly follow right after.

If you are intrested, avoid walk-in to branch, as they will sell you from the top and work their way down, try contact "Mortgage & Consumer loan business division" a special division that deals with loans at CCB.