Like Tree4Likes
  • 1 Post By freeier
  • 1 Post By freeier
  • 1 Post By becomjapanHK
  • 1 Post By ChuckFan

Tax loan season

Reply
  1. #1

    Tax loan season

    Hi everyone

    It’s tax loan season time again!

    I know interest rates are high now but wondering if there are any decent deals out there that are over 12 month tenures?

    I have been looking around and the only thing I found so far was ZA loan for 60 months at 4.89%.


  2. #2

    Join Date
    Sep 2018
    Location
    香港特别行政区
    Posts
    2,892

    They are all advertising headline rates of 1.7-1.8%. The actual rate depends on the value of the loan and your personal circumstances


  3. #3

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,613

    well, all the 1.8% offers are for 1y loan of 1.5m hkd or more.. and your monthly pay has to pass the test threshold on income and payment.. i think effectively your annual pay has to be more than 3.5m on a regular basis (i.e. not counting bonus) before they give you that loan and that rate. Any other combinations are offered at close to or higher than 5%

    jimbo_jones likes this.

  4. #4

    I’ve seen some 24 month loans under 2%, I think it was 1.78%, cannot remember. >2mil and you need the loan amount can be a maximum of 20x your monthly salary.


  5. #5

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,613
    Quote Originally Posted by flyingmmike:
    I’ve seen some 24 month loans under 2%, I think it was 1.78%, cannot remember. >2mil and you need the loan amount can be a maximum of 20x your monthly salary.
    really suspect so.. cost of fund for 2year is around 4.8%.. for them to lend you at 1.8% they going to lose 6% over 2 years.. if you see it again please send the link over.. i will be interested.

    theres no way one can really get a loan 20x monthly salary for 1/2 years, unless you stretch it to pay over 5years. The income/loan payment ratio is the hard target to be met.

  6. #6

    Just checked for you what was on offer.

    Hang seng bank
    12 months 1.78%
    30-60 months 3.50%

    DBS Bank
    24 months 2.20%


  7. #7

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,613
    Quote Originally Posted by flyingmmike:
    Just checked for you what was on offer.

    Hang seng bank
    12 months 1.78%
    30-60 months 3.50%

    DBS Bank
    24 months 2.20%
    https://www.dbs.com.hk/personal-zh/p...w-cardtiles-s1

    well, so its subject to minimum sum of 2m HKD for 24months, and you will get it at 2.2%.
    (notice that's the only one that's attractive, every other box shows 7% or more)

    2m for 24months, your payment will come to around 85k HKD. And HKMA requirement is your monthly income not more than 40% or 50% are servicing the loan. So technically you need to have 170k HKD p/m income and that's annual income of HKD 2m

    Less onerous than those 1y 1.5m offer. And since its a amortizing loan you technically borrowing 2m for 1year instead of 2.
    Anyway borrow this, put it in a mixture of 6m/12m/18m fixed deposits and maybe will be profitable. Just that the re-deposit risk after 12m is uncertain.
    drumbrake likes this.

  8. #8
    Name:  Screen Shot 2023-11-27 at 18.15.57.png
Views: 469
Size:  187.5 KB


    Playing around with the HSBC loan calculator, this seems to be the only way to achieve ~2%. As soon as you go $1 below 1.5M it goes to >6%....
    shri likes this.

  9. #9

    Join Date
    Nov 2018
    Posts
    83

    Do the banks actually give out loans at the BEST advertised rate? I tried 2 of them last year: SCB/Citi and even though I qualified for the best rate, after going thru the application process, both would only offer me a lower loan amount @ a much longer term and therefore at a much higher interest rate...

    LoganH likes this.

  10. #10

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,613
    Quote Originally Posted by ChuckFan:
    Do the banks actually give out loans at the BEST advertised rate? I tried 2 of them last year: SCB/Citi and even though I qualified for the best rate, after going thru the application process, both would only offer me a lower loan amount @ a much longer term and therefore at a much higher interest rate...
    i am sure there will be some that get those rate.. my boss where the published pay is IIRC around 1m USD p.a... i think he said he got it from HSBC at 1.7 or 1.8% and flipped it into the FD with 2 or 3% positive carry. But for the rest of the mortals unfortunately i don't have their model on how they work out the approval amount... its such a gimmicky message.. and unfortunately HKMA allows such things to go on for all these years.