Hi All,
I am a complete newbie to the whole matter of buying a property, and so am now looking for your recommendaitons as to who to go to for a mortgage.
I think my budget is between HK$4m-7m (depends on how much cash I can raise myself) but I hear different stories with regards to who volunteers what info.
By which I mean, my recent visit to HSBC got me the bear basics. Now I hear you can get a 75%-805 mortgage and then another 15%-20% loan on top of that meaning that you do not have to pay out such a large depoist in the first place.
Can anyone help me with their own thoughts?
And please use small words - so much of this stuff seems horribly complicated to me!
Thank you.
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sxc
17 yrs ago
Banks will loan a maximum of 95% of their valuation of the property. This is made up of 70% from themselves, and up to 25% from the HKMA or Standard Chartered. If you go over the 70% lending amount, then you need to pay mortgage insurance.
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Thanks for the help so far. I hear good things about Standard Chartered bank and BOC, and decidedly unflattering info about one or two other banks so will look into these guys first. Again - thanks for your help.
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Currently best rates are via SCB at Prime - 2.9. Banks want your business since this is not a great time to buy as market is about to drop. However 6-8 months from now is a good time to hit the market and banks offering sweet deals on the way down. I was also informed they could loan you the 95% and defer the mortgage insurance premium amount for a period of time.
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gwern
17 yrs ago
When I bought my property a mortgage broker was recommended by the agent. They work independently of both banks and agents and look for the best deal. This could be a better bank valuation vs interest rates. Less down payment so a higher percent mortgage. It may be worth letting someone else do the work for you. I found walking into banks cold was useless as they were generally unhelpful and very vauge. Maybe because I wasn't borrowing enough to make them excited?
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As mentioned above, just go straight to the bank. Better still, ask around where you work and get a business card from one of your colleages who has a mortgage and can recommend the bank they dealt with. Myself, I would recommend the HSBC branch in North Point. A lot of my friends have had pretty good service there.
I have used mreferral before and all they did was organize appointments for me with a few different banks. This is easily done yourself, as you can make an appointment with most banks online....
Good luck with the mortgage.
DaHKGKid; If this is true and the banks may consider dropping the insurance premium, I will be buying. Bring it on, more money in our pockets!.... How valid is your info??
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With real-estate soft and further reductions still on tap everyone is just going to wait it out. You will see very little transactions and lets face it why would anyone buy right now. Banks need your business, so best time is the last 5-8% of the market drop down where buying is beginning, banks are hungry for business and selection still exists. The banks will offer many different deals. Cashback, deferred payments on insurance premiums and the best discount on rates. Dont expect them to offer this opening, ASK FOR IT!
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I just got a mortgage with DBS - they offered the best rate of all banks. Try to get a HIBOR linked mortgage...you can get them to do an and or arrangement...
HIBOR + x.x%
Prime - x.x%
The bank has to give you the rate whichever is lower.
suggest you use a mortgage broker with good relationships with banks (they are able to give you a better rate than going to bank direct)
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Agree with sherryberry totally! But ask for those extras as well. Put it all on the table and work all elements for best deal.
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