What's the best mortgage rate out there?

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  1. #11

    Join Date
    Feb 2008
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    186

    Don't forget that mortgages are negotiable. Just tell them that the other bank offers a better deal and see whether they can match it/improve it.


  2. #12

    Join Date
    Mar 2008
    Posts
    13

    Links to current prime and hibor rate

    Everyone is quoting rates in relation to the prime and hibor rates... but where can I find what the current rates are for these two things online?

    I've tried googling and haven't been successful... these rates are bank specific correct?


  3. #13

    Join Date
    Jun 2005
    Location
    Hong Kong
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    23,217

    Prime is bank specific. HIBOR is an average.


  4. #14

    Join Date
    Mar 2008
    Posts
    13

    what maturity to use for HIBOR?

    Thanks for the reply. I checked the FAQ on the site from the link, and it doesn't mention what maturity for the HIBOR should be used. Does anyone know? If I were to guess it'd be 1 month.


  5. #15

    Join Date
    May 2009
    Posts
    675

    Yep - one month for the HIBOR rates.


  6. #16

    Bank Valuation on HSBC website is misleading

    I'm just in the process of looking at different mortgages now.

    I've found a property that I like and plugged the details in to the online Property Valuation tool on the HSBC website. I got the bank's valuation of that property and used that to negotiate with the agent.

    However, now I'm filling out the actual mortgage application form, the Bank is telling me their internal systems list the property at nearly 10%less.

    If you're buying a property, please don't rely on the tool on the HSBC website. The bank works out how much they are willing to lend you based on a % of their valuation, so in this case, I almost signed the buyer's agreement and committed to a property that I couldn't get enough mortgage to cover because I was using the wrong valuation figure.

    Meanwhile, aside from HSBC and Standard Chartered, anyone else got any bank recommendations? I still have a few weeks to make my final decision who to go with ...


  7. #17

    Join Date
    May 2009
    Posts
    675

    Chinglish - I had a similar problem - I spoke to someone at mreferral and was told that once I'd got the signed provisional sales and purchase agreement it was possible that banks would give higher valuations - I have no idea why this might be the case, but within 24 hours of me giving mreferral a copy of my PS&PA the broker came back with four banks' valuations at the agreed price...all of whom had valued it lower (by 6-10%) when I spoke to them direct.

    Another point, valuations should be valid for a certain length of time, but to ensure this happens you'll need to call the bank's valuation department direct and make a note of the reference number for the valuation they give you. That way you have some comeback should the valuation drop a week later.

    Valuations aside, I'd really recommend using Macky at mreferral (others on here have in the past too). I'd spent days calling/visiting all banks to find out their mortgage offers and then hours calling them all again to get valuations on properties I was interested in. I only went to mreferral really late on and kind of accidentally. Macky was super efficient and organised and came back with better mortgage offers than when I spoke to the banks directly. She also makes the application process faster as I just gave her one copy of everything and she faxed it to all the relevant banks. I wish I'd found her sooner!!

    Last edited by ArKay; 08-01-2010 at 09:28 AM.

  8. #18

    Join Date
    Aug 2006
    Posts
    7,189

    Another recommendation for Macky from me - she must have been there are years!

    The problem I have had from contacting banks directly is that quite often you end up with what is basically a doughnut, and you don't want this when you are dealing with million dollar transactions. With mreferral you will at least be put in contact with someone at the bank who knows what they are doing in relation to mortgages.


  9. #19

    Join Date
    Aug 2005
    Location
    Hong Kong
    Posts
    400

    From today's SCMP:

    In what could be the opening salvo of a renewed mortgage price war, ICBC (Asia) (SEHK: 0349) is offering what is believed to be the lowest ever fixed interest rate on a mortgage.

    Homebuyers will pay a fixed rate of 1.08 per cent for the first year.

    After that, the rate will be 3.15 percentage points below the prime rate. With the prime rate now at 5.25 per cent for ICBC (Asia) - it is 5 per cent at some other banks - the interest rate would be 2.1 per cent.

    The market rate for mortgage loans is 2.25 per cent, according to Kostka Cheung, senior chief vice-president at mReferral Mortgage Brokerage Services, a subsidiary of Midland Realty, Hong Kong's only listed property agent and ICBC's partner in the scheme. "It's the lowest fixed mortgage rate in Hong Kong," he said.
    I've also just got a 2% (P-3.25%, where P=5.25%) mortgage from Citi and a 2.05% offer from Hang Seng. 1% cash rebate and was able to reduce the prepayment penalty period as follows:

    First 12 months: 2%
    Second 12 months: 1% (ie return cash rebate)
    3rd year: No penalty..

  10. #20

    Join Date
    Sep 2009
    Posts
    345

    Sorry, I repeated what someone wrote above. I should read before posting.

    Last edited by Mr. No; 08-01-2010 at 01:36 PM.

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