Best mortgage deals

[lionrock88]

I've been offered P-2.9 with Hang Seng and 0.5% cash back.

Hang Seng's Prime is currently 6.75% so effective rate is 3.85%.

Does any one know if there are any other better mortgage deals with some of the other banks?

[PDLM]

I was offered 3.85% with 0.7% back from HSBC yesterday. You should also look at the early repayment terms/penalties if that's something that you might want to do.

[pin]

i got the same offer from Hang Seng. I asked HSBC to match, but they were not willing to.

[lionrock88]

Thanks a lot.

PIN... when you say you got the same offer from Hang Seng, do you mean 0.5% or 0.7% cash back?

PDLM... my prepayment penalties are

First year - 1% of loan amount and a handling fee of 0.5% of prepaid amount.

13-36 mos - handling fee 0.5% of prepaid amount only.

Does any bank offer no prepayment/early redemption penalties?

[KnowItAll]

>> Does any bank offer no prepayment/early redemption penalties?

Extremely rare from what I gather. Done very specifically to discourage amateur speculation from what I've been told.

[PDLM]

Both the HSBC base mortgage that I took on in August and the current offer have similar repayment penalties for the first year, but partial repayment (up to a percentage - perhaps 50% from memory) in the second year is quite cheap. There are no penalties after 24 months.

[pin]

Thanks a lot.

PIN... when you say you got the same offer from Hang Seng, do you mean 0.5% or 0.7% cash back?

PDLM... my prepayment penalties are

First year - 1% of loan amount and a handling fee of 0.5% of prepaid amount.

13-36 mos - handling fee 0.5% of prepaid amount only.

Does any bank offer no prepayment/early redemption penalties?

it was 0.5% cashback.

my penalty terms are exactly the same.

BTW standard chartered offered me a mortgage without any penalties, however can't remember the interest rate, but it wasn't as good as the Hang Seng one.

[Meerkat]

Early March 08 Actual rates (after P and "-"):

BOC - 2.95% - Pen 1/2 year, 0.5%
Bank of Comm - 2.85% - no penalty period
Standard Chart - 2.85% - Pen 1 year, 1%
Fubon - 2.85% - Pen 1/2 year, 0.45%
HSBC - 2.95% - Pen 1 year, 1%

Of course not all banks reduce their P amounts at the same time so that could catch some out. Do check the P rate. HSBC and BOC are expected to cut their P rate when the feds cuts rates in the US.

These are all without cashback but you can negotiate that in if you need the cash. This will change the penalty period

[Boris]

Did you read the SCMP on Saturday ?

BOCHK actually INCREASED their mortgage rates. This because of the increased cost in cross bank lending. Yes - I was surprised also but makes sense.

[helles]

I've just been offered P-2.9%. interest rate = 2.85% plus 0.5% rebate and $888 cash.

Terms are 2% penalty in 1st year of full repayment or 1% in 2nd year.
Partial payment = 1% in 1st year

And no handling charges.

This was at BoC, today.