Mortgage: extra loan for property down payment. Possible? Legality?

[Gatts]

Let's say there is a property you're interested in, and you have a mortgage plan approved by the bank but you're HKD 450k short to pay all involved down payment costs. Would lending this amount from another financial institution on a relatively short term (3-5y) basis conflict with your approved mortgage in any way?

[zergmei]

The loan will be unsecured credit ? Then u will have a slightly dented credit report. U may get less Ltv and or higher cost of borrowings.

Let's say there is a property you're interested in, and you have a mortgage plan approved by the bank but you're HKD 450k short to pay all involved down payment costs. Would lending this amount from another financial institution on a relatively short term (3-5y) basis conflict with your approved mortgage in any way?

[Oldtimer]

You are not breaking any law If the other financial institution is willing to finance you.
They may not be able to put a lien on the same property. So the loan will be given to you personally.

Let's say there is a property you're interested in, and you have a mortgage plan approved by the bank but you're HKD 450k short to pay all involved down payment costs. Would lending this amount from another financial institution on a relatively short term (3-5y) basis conflict with your approved mortgage in any way?

[Gatts]

The loan will be unsecured credit ? Then u will have a slightly dented credit report. U may get less Ltv and or higher cost of borrowings.

yes, unsecured credit basically. The thing is this would be after the initial pre-approval of the loan but before actually signing the mortgage, meaning it wouldn't influence the credit report. If I assume correct?

[Dreadnought]

I believe that so long as your debt-to-income ratio does not exceed 50% or whatever it is these days (lower for properties exceeding HKD 10 or 12m?), you should be okay.

If you get a pre-approval from the mortgage lender, then take out a personal installment loan, and then apply for the mortgage after drawing down the first loan and putting down the initial deposit, the bank providing the mortgage will be able to see, on your credit report, that you have taken that first loan.

Again, so long as both loans keep you within the maximum debt-to-income ratio, you are okay. If not, then you could be in a bit of trouble.

Of course, it would be wise to check with the mortgage lender first, and run it by them before you even take out your personal installment loan. And let them know how much that loan amount, and your EMI will be and over what period.

[zergmei]

i think it should be safe

[walkup]

An unsecured loan would not be a loan related to the property purchase so treated separately, but....the interest rate on that loan will be that of a personal loan. And can you pay it off quickly?