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2019 - Mortgage Refinancing

  1. #51

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    Quote Originally Posted by shri
    @pin - quick question.

    I've not got the details for this but perhaps you have a better answer.



    What do you need to keep in that linked account - Fixed Deposits or Cash? So essentially if you have a $100 mortgage, you would keep $ 50 which would earn you H+1.235% in interest payments.
    I believe generally overnight deposits at the high rate. gives you the flexibility that you don't need to use your cash to pay up the loan, and can draw out from the deposit anytime you want if something really attractive comes along ?

  2. #52

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    Quote Originally Posted by shri
    @pin - quick question.

    I've not got the details for this but perhaps you have a better answer.



    What do you need to keep in that linked account - Fixed Deposits or Cash? So essentially if you have a $100 mortgage, you would keep $ 50 which would earn you H+1.235% in interest payments.
    Cash I believe. I've been told they will just convert my existing savings account into the mortgaged linked account. And yes basically whatever you keep in there, up to 50% of the value of your mortgage will earn the same rate as your mortgage (so in my case H+1.235%).
    shri likes this.

  3. #53
    bdw
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    Quote Originally Posted by pin
    Cash I believe. I've been told they will just convert my existing savings account into the mortgaged linked account. And yes basically whatever you keep in there, up to 50% of the value of your mortgage will earn the same rate as your mortgage (so in my case H+1.235%).
    That is exactly what I have in Australia, except I can have up to 100% in the cash account, and mortgage rates in Aus are around 4.6% now. This is why I am borrowing up to my neck in Hong Kong, tax loans, overdrafts, credit to cash loans, etc. I am going all out, non stop, no holes barred maxing out everything I can in Hong Kong. But then I have stockpiles of cash in Australia that offsets this debt and overall saving me a few % in the interest rate differential between Aus and HK.

  4. #54

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    @bdw - all you have to do is blink...

    The Hong Kong Interbank Offered Rate rebounded today. The one-month Hibor, a benchmark for mortgage rates rate, climbed by 10.32 basis points to 1.98464 percent, compared to the last trading day.
    From The Standard.
    Have a GeoExpat related problem - please create a support ticket.

  5. #55

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    Quote Originally Posted by bdw
    That is exactly what I have in Australia, except I can have up to 100% in the cash account, and mortgage rates in Aus are around 4.6% now. This is why I am borrowing up to my neck in Hong Kong, tax loans, overdrafts, credit to cash loans, etc. I am going all out, non stop, no holes barred maxing out everything I can in Hong Kong. But then I have stockpiles of cash in Australia that offsets this debt and overall saving me a few % in the interest rate differential between Aus and HK.
    If you are borrowing in HKD and investing in AUD, does that leave you exposed to the risk of adverse FX movements (e.g. the AUD falling against the HKD) or are you intending to repay the HKD loans from other HKD income?

  6. #56

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    middle of last week, overnight hibor hit a high of 3.3%.. then it fell back..
    market rumored that some of the carry trade guys were pushing the market to force some stop losses.. unverified.. anyway on friday hibor fell back to 1.6% level.. so that seems normal..

    today it bounced back to 1.9%.. my guess, it won't be that kind of low hibors anymore.. it will stablize at some slightly higher level going ahead...


  7. #57
    bdw
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    Quote Originally Posted by shri
    @bdw - all you have to do is blink...



    From The Standard.
    Yep, in the 6 pages of this thread I've gone from looking to refinance, to putting it on hold, to looking into it again now.

  8. #58
    bdw
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    Quote Originally Posted by traineeinvestor
    If you are borrowing in HKD and investing in AUD, does that leave you exposed to the risk of adverse FX movements (e.g. the AUD falling against the HKD) or are you intending to repay the HKD loans from other HKD income?
    Actually I'm borrowing in HKD and investing some in HKD (shares, etc) and then some in AUD. Unless something disastrous happens in HK, the money I send to AUD is a one way transfer that shouldn't need to be sent back. So less FX risk.

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