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Great mortgage deals? P or Hibor? To fix or not to fix?

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  1. #1

    Join Date
    Jan 2011
    Posts
    15

    Great mortgage deals? P or Hibor? To fix or not to fix?

    Hi all,

    After a year or so of deliberating I've finally decided to bite the bullet and dip my toe into the icy pool that is the property market in HK.

    I've just been reading through some old threads on here (http://hongkong.geoexpat.com/forum/1...ad17037-4.html) and picked up a general consensus that a prime rate mortgage was better than a HIBOR.

    I was given the following information by mReferral:

    <BOC>
    Interest rate : P-2.85% (P=5%)
    Cash rebate : 1%
    Penalty : 2%/1%

    <HSBC>
    Interest rate : P-2.85% (P=5%)
    Cash rebate : 1%
    Penalty : 3%/1.5%

    <SCB>
    Interest rate : P-3.1% (P=5.25%)
    Cash rebate : 1%
    Penalty : 2%/1%

    <CITIBANK>
    Interest rate : 2.15% for first three years then P-3.1% (P=5.25%)
    Cash rebate : 1%
    Penalty : 2%/1%/1%

    I was wondering what opinions people had on these deals. I'm leaning towards the Citibank fixed which will give me 2.15% for 3 years - I think this is a safe bet, no? And very low for a fixed rate? I'm no financier but it seems looking online (OK could well be bad sources) that the general consensus is that rates will rise rather than drop. Then I have a pretty good P- deal for the last 2 years I will be tied in for.

    Outside of what I know above, I'd be really grateful for any other advice that people may have.

    Last edited by Richey; 28-08-2012 at 01:51 PM. Reason: didn't finish first time
    pin likes this.

  2. #2

    Join Date
    Feb 2012
    Location
    Hong Kong
    Posts
    126

    Hi, I just started looking seriously at real estate in HK,
    seems banks don't really offer fixed rate mortgages here in HK, I searched a few bank websites, but have not found any info for a fixed rate.
    Did you go with the hibor or prime?


  3. #3

    Join Date
    Jul 2007
    Location
    TST and Macau
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    [

    Quote Originally Posted by Richey
    ...
    <CITIBANK>
    Interest rate : 2.15% for first three years then P-3.1% (P=5.25%)...
    Quote Originally Posted by kmn911
    ...I searched a few bank websites, but have not found any info for a fixed rate...
    Have you actually read what Richey wrote? I find that interesting as I haven't heard of fixed interest in HK either.

  4. #4
    Mat
    Mat is offline

    Join Date
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    Location
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    Quote Originally Posted by hktraveller
    [
    Have you actually read what Richey wrote? I find that interesting as I haven't heard of fixed interest in HK either.
    There are some but they are fixed for a short period of time. sCB used to (donno now) to offer 1.68 fixed for 18 months and the p-something

  5. #5

    Join Date
    Feb 2012
    Location
    Hong Kong
    Posts
    126
    Quote Originally Posted by hktraveller
    [
    Have you actually read what Richey wrote? I find that interesting as I haven't heard of fixed interest in HK either.
    In the US a Fixed rate mortgage is fixed for the ENTIRE duration of the mortgage not fixed for 3 months then converts into an adjustable rate mortgage.

    <CITIBANK>
    Interest rate : 2.15% for first three years then P-3.1% (P=5.25%)...
    What Richey's words describe is an ARM mortgage
    Last edited by kmn911; 20-01-2013 at 12:09 PM.