New policies on mortgage released, will it affact my mortgage application?

Wanna buy a house, but the valuation of the property I wanna buy was under-estimated. Those bankers said that is due to new policies released.


As title, will it affact my mortgage applicaion once I buy that house?

yes, the banker will use his valuation and then apply the 70% (or whatever else depending on price)

most likely you can ask your real estate agent to bargain with land-lord, either ask him/her to lower the price or try to find some ways to apply your mortgage with higher valuation......

As i knew, lots of banks in HK is going to tighten the amount of mortgage loan offered, such as lower the valuation of properties or lower the loan-to-value ratio allowed. But some bankers have some methods to cease out such measures.


If you have any bankers cna help you to do so?

No, I dun haf one. So what should I do, juz put off my plan to buy a house?

Re: Siumanchan99


Most of ready buyers in HK now can deal with mortgage referrer, and they deal with most of banks in HK and help you to choose the best deal.


here is your reference: www.gomortgage.com.hk

The new risk management measures on residential mortgage lending may affect your mortgage application depending on the value of the property you wish to purchase.


According to the new measures, the maximum loan-to-value ratio for residential properties with a value at or above HK$12 million will be lowered from 60% to 50%. Likewise, the maximum loan-to-value ratio for residential properties with a value at or above HK$8 million and below HK$12 million will be lowered from 70% to 60%, with the maximum loan amount capped at HK$6 million. The maximum loan-to-value ratio for residential properties with a value below HK$8 million will be maintained at 70%, with a maximum loan amount capped at HK$4.8 million. Meanwhile, the maximum loan-to-value ratio for all non-owner-occupied residential properties, properties held by a company and industrial and commercial properties will be lowered to 50% regardless of the value of t he property.


The above measure takes effect on 20th November 2010. Unless the provisional sale-and-purchase agreement of the property was signed on or before 19th November 2010, your mortgage application will be affected.


Weir & Associates

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Hong Kong

Tel : k2526-1767

Fax : 2868-3568

Email : WeirLaw@HongKongLaw.com

www.HongKongLaw.com/weirlaw

Associates,

werent there further changes/restrictions to the policy recently? Also, how does all this affect lending using HKMC insurance?