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2019 - Mortgage Refinancing

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  1. #1
    bdw
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    2019 - Mortgage Refinancing

    Quote Originally Posted by pin
    So I guess you have had your 2019 tax loan sorted then.
    haha no I've been rejected for tax loans because I have too many! But something I am now considering is to refinance my mortgage with Standard Chartered. My current mortgage is down to around 25% of property value. They are offering me a 1.95% cash rebate if I sign a piece of paper that says I won't leave them for the next 24 months and I can even draw more out of it up to 50% of property value (so another $3 - $4 million). The only catch is I would lose my current mortgage rate H + 0.7% which over the last 10 years has been a fantastic rate (around 1% total) but these days is not so good anymore. I'm just wondering whether to give up on this now and take the 1.95% cash rebate.

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    @bdw - There is never a slow day in your life. Save some money to buy us drinks...

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  3. #3

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    The only catch is I would lose my current mortgage rate H + 0.7% which over the last 10 years has been a fantastic rate (around 1% total) but these days is not so good anymore. I'm just wondering whether to give up on this now and take the 1.95% cash rebate.
    If your call is H will hover above 1.5%, go for it mate, either way you will hit the cap and pay around 2.25%.. Pocket in 1.95% rebate, draw 3-4 mil, pay back your tax loan, remit left over to AUD (Averaging previous remits/ pay back mortgage etc), you will be free for another tax loan before next year..
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    Quote Originally Posted by shri
    @bdw - There is never a slow day in your life. Save some money to buy us drinks...
    @shri - could you separate this into a new thread, about mortgage refinancing as this is something I'm actually looking into as well.

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    Quote Originally Posted by nivantj
    If your call is H will hover above 1.5%, go for it mate, either way you will hit the cap and pay around 2.25%.. Pocket in 1.95% rebate, draw 3-4 mil, pay back your tax loan, remit left over to AUD (Averaging previous remits/ pay back mortgage etc), you will be free for another tax loan before next year..
    Can't pay back tax loans early? I thought there are penalties for doing this.

  6. #6

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    Yes i know, was just making sure bdw should not go out of credit and must get Tax loan anyhow..


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    (split out of the Xiaomi thread)


  8. #8
    bdw
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    @shri Thanks for splitting it out, sorry for changing topic

    Yeah I've still got 2 and 3 years to go on a couple of tax loans and they are locked in with good rates and I have no interest to pay them back early. If I was to remortgage and redraw with SCB now, it would just be to pocket a quick 1.95% and then probably send the money to Australia and could just about completely pay off my mortgage there and it's fairly sure HK rates would always remain a few % lower than Aus. Even if HK rates go up as predicted, Aus rates are also predicted to go up.

    It does seem like a typical thing for HK'ers to refinance their mortgages every 2 years and pocket 1-2% cash back. One of my mates in the office here is laughing at me because I've had my mortgage for 10 years now and he's shocked I've missed out on 5 rounds of rebates and all I have to do is sign a piece of paper to say I won't leave for the next 24 months. I did try to explain to him my rate is H + 0.7% which is the reason I havent been doing this but still he's probably right if I can keep getting 1.95% back every 2 years then that's effectively a big drop in the interest rate so probably I should have been doing this .

    Now I'm talking with SCB and still on the fence about whether to do or not. They are offering me already P - 2.9% but they said they can try and get me P - 3%. They are suppose to come back to me within a few days to see if they can offer this rate or not.


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    What happens to your Mortgage insurance/protection plan (MIP), if you have one, does it get rebooted every time you refinance your loan with another bank? If so, isn't it practically zero sum game by getting 2% cash rebate on one-hand and pay-back roughly 2% for MIP every time!!! In case of MIP with bank, it looks like you are paying back full loan to bank A and getting another loan with new MIP with bank B.. Not sure if equation changes if MIP is with HKMA..


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    What is this MIP thingy? Not something mandatory is it?


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