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Mortgage in HK

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  1. #1

    Mortgage in HK

    So the wife and I are looking to buy a flat in my name (UK citizen and HKPR) here in HK. I know they will do a credit check, which is fine, but we have a slight concern.

    I was the director of a business in the UK (the directorship changed just before the covid outbreak) but I am still one of the guarantors on the lease. The business has been heavily affected by the whole situation and has started to fall behind on some bills - nothing major, just putting certain things off until things can pick up again...if they ever do!

    Would any of that impact my mortgage application here in HK? I don't have any debt here or in the UK, just the above is making me worry - don't want to lose 500k if we pull the trigger and it comes back as 'no'.

    Cheers


  2. #2
    Original Post Deleted
    That's all fine as I'm on the NET scheme and can show the contract/bank statements. I don't really have concerns with the salary check/credit check, just wondered how deep of a search they can make and whether the situation in the UK would make a difference.

    Cheers

  3. #3
    Original Post Deleted
    Brilliant, thanks a million!

  4. #4

    Join Date
    Dec 2002
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    What ** says + sit down with a mortgage broker like MReferral / Centamortage and get a good idea of what sort of mortgage is possible within the scope of your income and the property you're looking at purchasing.

    https://www.mreferral.com/en/

    Seems like the CentaMortgage server is throwing up errors ... find it at some point through google.

    nihaobitches likes this.

  5. #5

    Join Date
    Aug 2008
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    700

    When you sign the Pre Sales and Purchase Agreement you can also add in a "subject to finance" clause. I have always bought my places here with one. It is not standard, your lawyer (who I always get to check everything before the PS&P agreement is signed) always tells me no one in HK will sign a PS&P Agreement with a subject to finance clause, but writes one in for me. And I've personally not had a problem with the vendors accepting it.

    You should be fine if your HK situation is fine for the credit check and stress testing, but personally I feel it takes a lot of pressure off to have the clause included should for some reason the banks decline to offer me a mortgage.

    nihaobitches likes this.

  6. #6

    Join Date
    Dec 2002
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    Quote Originally Posted by Kiz:
    When you sign the Pre Sales and Purchase Agreement you can also add in a "subject to finance" clause. I have always bought my places here with one. It is not standard, your lawyer (who I always get to check everything before the PS&P agreement is signed) always tells me no one in HK will sign a PS&P Agreement with a subject to finance clause, but writes one in for me. And I've personally not had a problem with the vendors accepting it.
    If the seller does not agree to a "subject to finance" clause (I would not.. because there is an opportunity and risk cost), make sure you negotiate for a longer completion date, which will give you time to get your mortgage approved - if you're not confident / pre-approved.

    With additional stress testing being done these days - it is expected that the banks will ask for more information and each round of info adds an additional week or so.
    nihaobitches likes this.

  7. #7

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
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    If you're not in a hurry and the seller of the place you want to buy isn't in a hurry either, then you can try to get yourself pre-approved for a mortgage with at least one bank before formally signing the Pre-Sales and Purchase Agreement with the seller.

    However, if you want the best deal, generally you need to be ready (have enough accessible money), flexible, and know an agent or multiple agents, if possible, that is/are willing to tell you as soon as a desperate seller appears that is selling a place within your specified criteria. At the moment a deal appears within your criteria, you as soon as you can take a huge leap of faith and put money down and sign. Then within two weeks of signing that first paper, you need to pay the stamp duties that apply to you for the property you're buying and you need to pay the rest of the 10% of the agreed on purchase price that you didn't pay when you signed the Pre-Sales and Purchase Agreement.

    For finding the best deal on a mortgage I can strongly recommend StarPro Agency because they actually give you part of their referral money that banks pay them. They also will tell you which banks currently have the best deal, and they will hold your hand (digitally via WhatsApp and e-mail) through the whole process. I got 1.3% (of 60% of the selling price) cashback from ICBC, but StarPro gave me an additional 0.3% (of my total mortgage amount) cashback, and ICBC had a 2.35% 30-year mortgage rate at the time (November 2019 to January 2020).

    Which bank will offer you the best mortgage deal today? WhatsApp or call Kate at StarPro Agency at 51108890. Their website is only in Chinese, but their staff can WhatsApp and e-mail in English. https://starpagency.com/ (you can try to use Google Translate)

    Additionally, you'll need to find a property lawyer, and you can use whatever methods work for you to do that. Maybe ask a friend for a recommendation that has bought a property in HK. You should expect to pay 5,000 to 10,000 for a lawyer do all the legal things needed to help you complete your purchase of a flat in HK. The exact price depends on if you're willing to negotiate (ask more than one lawyer if they're willing to do it at the price you want) and the exact details of your property purchase.

    Good luck!

    shri and nihaobitches like this.