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HIBOR plans

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  1. #21

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    Oct 2008
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    even if rates became H + 3%, mortgages here would still be cheaper than like 95% of the world. HK mortgages are just cheap as dirt now.

    so if you're getting "only" H + 1.5%, laugh about it because you're complaining about what so many people in the world would love to have but never will.

    =XTR=M= likes this.

  2. #22

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    I do not know a lot of ppl in my entourage who are happy with HSBC mortgage services to be honest.

    Most ppl I know are with SCB, BOC and smaller local banks (who usually provides more attracive rates)


  3. #23

    Join Date
    May 2007
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    599

    News yesterday was that DBS has changed its HIBOR rate to H + 2-2.5% which make them pretty unattractive compared to P-based rates.


  4. #24

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    It is obvious that sooner (rather than later) the H will become expensive than the P.
    It has always been the case in the past 25 years except the last 2 years (and one time in the 90ies).


  5. #25

    Join Date
    May 2007
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    Quote Originally Posted by Mat:
    It is obvious that sooner (rather than later) the H will become expensive than the P.
    It has always been the case in the past 25 years except the last 2 years (and one time in the 90ies).
    But for those who were able to lock in H+0.7% with a P-3% cap are pretty much going to only pay slightly more if H goes up and the cap cuts in compared to the standard P-3.15% mortgage.

  6. #26

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    Quote Originally Posted by sxc:
    But for those who were able to lock in H+0.7% with a P-3% cap are pretty much going to only pay slightly more if H goes up and the cap cuts in compared to the standard P-3.15% mortgage.
    That is not what we are talking about right now. what we are talking about is H+2.5 (as per post just above mine).

    Talking about the interest rate people locked in 3 years ago is irrelevant to the situation now.

  7. #27

    Join Date
    May 2007
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    I know. However even when H+0.7% with P-3% cap was offered, many people argued that it didn't make sense to take up the offer since HIBOR was going to rise and was historically higher than P- plans. That argument didn't make sense to me.


  8. #28

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    Quote Originally Posted by sxc:
    I know. However even when H+0.7% with P-3% cap was offered, many people argued that it didn't make sense to take up the offer since HIBOR was going to rise and was historically higher than P- plans. That argument didn't make sense to me.

    I think it depended at that time on whether in your plan you could switch P and H as much as you wanted/

    If you could only switch once (I recall the case of some plan like that), and since the P offered in H plan was less good that the normal P, then, and assuming you buy long term, you were taking a risk that if the H was to go above the P within a short timeframe (1/2 years) then you would be stuck with a P higher for a longer period (5/10 years than if you had taken a normal P from day one (ie with a normal P you would have pay a little higher the first 1/2 years but less on the long run)...

    But if in your plan you could switch back and forth (of if you bought for only short term - 1 / 2 years) than H was probably the way to go.

  9. #29

    Join Date
    Feb 2009
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    Well everyone has been saying for 3 years now that H will rise soon. IT HASNT. H is still 0.2%. So now the banks have resorted to adjusting the +X factor on the end because they are getting pissed off waiting for it to rise. They thought it would rise, but they were wrong.

    Im sure the banks do not want to adjust the +X, because now they have some customers locked in on great deals for life. The banks want the H to rise so they can rip off all customers evenly, not only new customers.