Posted by
elane
19 yrs ago
We are considering buying a flat in Hong Kong.. I understand banks offer mortgages on 80% of the property value. Is it possible to take out a second mortgage for another 10-15% of the property value? If yes, what banks/organizations offer these second mortgages?
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Yes it is if you have unemcumbered property or disolvable investments elsewhere (easy to cash in bonds, shares, cash, etc) the bank will take 75-80% value of these off shore investments - have just organised it for ourselves.
They cannot take the remainder of the mortgage on the HK house due to laws of this country.
Having just spent quite a number of hours of the past weeks unravelling the mysteries of the HK property market I have to conclude it is not an easy place to buy property unless you have plenty of cash and don't need to worry about bank valuations. Far more complicated than Australia, which is probably why there are not more homeowners....
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pauly
19 yrs ago
Elane
i just got a mortgage from hsbc - i got a 70% one but they can give you up to 95%
most high street banks offer this
they get the additional 10 - 15% from the HKMC (or something like that ) the catch is that you have to get your mortgage insured which costs about 2- 3 % of the total cost.
also they are a little stricter on the credit checks etc.
but if you can show regular income and good credit it should be fine
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elane
19 yrs ago
Thanks dimac4 and pauly for your input. So, how does the process work here? In the US you go to a loan officer and get preapproved for the amount of mortgage you qualify for and then look for a house under those parameters. Do you do the same here? Also, re. HKMC, do you approach them directly or does the bank you approach work with them for the additional 10-15%? Thanks in advance.
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Dear Oldhand -
Could you send the link to me at delian_1@hotmail.com? Thank you.
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elane
19 yrs ago
Oldhand
Yes, please send the info. to my email:
tictacs@fastmail.fm Thank you.
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No - it is harder to buy property here. I have never had such a difficult time arranging finance, securing a house and just getting sorted...and I have bought many houses in my home land.
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http://www.hkmc.com.hk/eng/pcrm/ourbusiness/mip.html
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