mortgages in HK

[LuisHK]

Thanks, do you mean if the entity buying (individual or company) comes up with a 30% deposit, it will be able to get a mortgage no matter its income or its ability to document it?

[drumbrake]

To get a mortgage you must be able to show an income that will cover the monthly repayment, as well as all your other expenses. Currently interest rates are very low so your repayments will also be low. Don't expect them to remain low for ever.

[UK/HKboy]

Thanks, do you mean if the entity buying (individual or company) comes up with a 30% deposit, it will be able to get a mortgage no matter its income or its ability to document it?

borrowing 70% is usually the maximum (although there are some special cases which allow up to 90% or 95%).

That means a bank will loan it if you have a very good credit record with good income, and good financial history.
however, the maximum repayment is half your monthly salary so this will also depend on how long the repayment is and the length you are allowed will also depend on things like you age, the age of the building etc.

with the current situation i believe banks will be more cautious and i think some are refusing to offer any loans over 50 or 60% of the value.

to be safe, i would suggest a loan of no more than 50% and a repayment of no more than 40% of your monthly salary.

[shri]

>> i would suggest a loan of no more than 50% and a repayment of no more than 40% of your monthly salary

Rather than speculate, it is best to approach your bank and ask them to pre-approve you for X million. I'm not sure if the bank needs to know the property details at this point... it is a simple in principle approval based on your credit situation and records you can provide to your bank.

Armed with that, you'll have a good idea of what your worst case situation might be.

[jimbob70]

So the process is to get the prelim contract, pay a deposit then arrange for finance.

What if you lose job after you signed the prelim?

Do you just give the latest 3 months of salary proof you have to the bank and just not tell them you been made redundant?

How long does it take from signing this prelim to getting the keys?

[drumbrake]

If you don't have a job how will you pay the mortgage?

From signing the provisional agreement it usually takes a minimum of 4 weeks for completion. The exact time is agreed between the buyer and seller.

[shri]

>> From signing the provisional agreement it usually takes a minimum of
>> 4 weeks for completion.

Play safe and ask for a 60-90 day closing as banks are taking longer to move on mortgages.

[UK/HKboy]

So the process is to get the prelim contract, pay a deposit then arrange for finance.

What if you lose job after you signed the prelim?

Do you just give the latest 3 months of salary proof you have to the bank and just not tell them you been made redundant?

How long does it take from signing this prelim to getting the keys?

if you lose your job, you cannot pay the mortgage and then the bank repossess your house...

i think you should ask some banks to give you a pre-approval for a mortgage before you sign the provisional because after the initial deposit (small amount probably about HK$50,000) you will have 2 weeks to pay the big deposit of 10%.

my agent didnt tell me anything about getting pre-approval so i thought i would have time to get this before paying the 10% (quite a large amount). i had a bit of a shock, but if you tell the banks you want to get a reply before you pay the big deposit they can try. i got mine from BOC in 5 working days just tell them another bank has promised you...

the date you get the keys can be decided between you and the owner. this could depend on whether they have to move out, or even feng shui and the "good" days to move.

[PDLM]

if you lose your job, you cannot pay the mortgage

That doesn't follow at all. I've lost my job, but I can still pay the mortgage. The reason I have a mortgage is that the bank lends me money at just over 2% and I can invest it very safely at 5-6% so it's free money.

[jimbob70]

if you lose your job, you cannot pay the mortgage and then the bank repossess your house...

i think you should ask some banks to give you a pre-approval for a mortgage before you sign the provisional because after the initial deposit (small amount probably about HK$50,000) you will have 2 weeks to pay the big deposit of 10%.

my agent didnt tell me anything about getting pre-approval so i thought i would have time to get this before paying the 10% (quite a large amount). i had a bit of a shock, but if you tell the banks you want to get a reply before you pay the big deposit they can try. i got mine from BOC in 5 working days just tell them another bank has promised you...

the date you get the keys can be decided between you and the owner. this could depend on whether they have to move out, or even feng shui and the "good" days to move.

Thanks, It's just paying a non refundable deposit before getting pre approval that worries me.

So its 3% then get bank approved by 2 weeks, then top up to 10%.

When does the top up to 30% and the remaining balance get transferred? Close to exchange date?