High advance mortgage (MIP) providers - issues?

[Meerkat]

Has anyone any experience of the high advance "Mortage Insurance Programme" not being approved?

I don't want to risk the 5% initial deposit on a property if there is a high risk of MIP providers not approving the insurance on the "high advance " mortage amount.

The bank is happy to provide the 70% standard mortgage amount with no qualms. We seem to pass all the criteria for MP but were wondering if this is a formality or can have its problems?

[lionrock88]

Meerkat,

I understand where you are coming from. It's tough to put a 5% deposit down if you are not 100% sure you can secure the 95% LTV mortgage.

Your best bet here is to apply for the MIP for the property/asking price you have in mind - prior to signing your Provisional S&P and hope that the bank can approve your mortgage application.

The banks are inclined to take your application less seriously without a signed Prov S&P but push them a little bit and they should process your mortgage application.

This beats the possibility of signing the S&P, only to find that you can't complete it and losing your deposit!

The other option is to buy a property where you know you can afford the 30% down payment.

Banks like Standard Chartered and Hang Seng also offer an 85% LTV for investors that does not need approval from the HKMC. The approval process is not as strict and this could be another good option.

[Meerkat]

Lionrock, great insight much appreciated

MKT