Mortgage - what, how, where!!!!!

Reply
  1. #1

    Join Date
    Aug 2003
    Location
    North Point
    Posts
    116

    Mortgage - what, how, where!!!!!

    Whats the best options for a gwailo to get a mortgage in HK? I live here - I want a house but don't know where to start. Any experiences? or advice?

    I am in a position where I am employed by a UK firm and paid mostly in UK GBP - part of my salary is paid in Hong Kong for living expenses etc. etc.Which banks are most helpful for the gwailo about town with money to be borrowed!!!


  2. #2

    Join Date
    Aug 2003
    Location
    North Point
    Posts
    116

    thanks everyone for the underwhelming response. next time I will ask a traffic warden


  3. #3

    Join Date
    May 2004
    Posts
    473

    Honestly I don't think its any different for gwailo or local wrt getting a mortgage, if you just would like a survey of rates just have your list of numbers, call and ask what they are offering for (say example) 70% of $M over 20 yrs. The only problem or delay rather would be rather to find a bank able to communicate with you in English so you're comfortabel signing your life away. Also the fact that some banks (StanChart, others) offer savings + mortgage plans that you would need to understand to make sure you're comparing apples/apples. good luck!


  4. #4

    Join Date
    Apr 2003
    Posts
    12,383

    I'd first approach the banks (HSBC, Stan Chart) and try and get pre-approved. We had pre-approval from a couple of banks when we purchased.

    Next, look for some properties within the range you can afford. Unless the property is new, you'll be expected to pay a 30% down payment. Incase of new properties, additional financing can be arranged by the developers (at much higher interest rates).

    If I recall, 5% downpayment is required for an intent to purchase contract (which then gives you a pre-negotiated time to close the deals). Your lawyers take over at this point and do their due dilligence. Again, from memory, the funds are held by the lawyers at this point and not transfered over to the owners.

    In our case, one of the apartment we'd selected had a problem with an illegal structure and the money was returned to us after both our lawyer and the bank pointed it out to us.

    Rather than talk to a traffic warden, I'd start with a friendly bank manager. They'll take into consideration the fact that your salary is not paid in HK and let you know what can be done.

    Credit is one of the biggest reasons you want your as much of your salary paid in full locally, if you intend to continue living in that place.

    Finally, I would personally not purchase at this point. The interest rates are rising, oil prices are out of control, and the sun spot activities seem to indicate that this might be a short boom and bust cycle.

    (Another indicator that I use is when this one American Investment bank I'm familiar with expands to more than 10 floors in their prime central location...)

    Having said all of this .... hey its your money.