18Likes
I expect HK will ponder over this and follow Macau's lead in a week or two.
https://www.aastocks.com/en/mobile/n...newssource=HK6Macau Association of Banks is allowing cash-strapped local mortgage clients to file an application at banks, so that they may repay interest rates only, i.e. principal repayment shelved, for six months at most. This allowance is applicable to individual, merchant and company clients.
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03-02-2020, 05:25 PM #1
Hong Kong / Macau - Relief from Banks
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03-02-2020, 05:29 PM #2
It's a wonder why this product is not part of the normal offerings to house buyers, at least I have never seen it. All my mortgages were interest only in the UK. Saved a fortune in repayments and house price inflation took care of capital value..
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03-02-2020, 05:39 PM #3
+1 for that and then property developer financing.Original Post Deleted
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03-02-2020, 09:46 PM #4
Having most mortgages in HK on a P+I basis and not interest only is one of the reasons there is so much equity in the HK property market and why the banks have such little risk when (not if) the property market takes its next big fall.
That said, interest only could well have seen us add another property or two to our modest portfolio so, yeah, it would have been good for us.
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04-02-2020, 09:36 AM #5
It was all the rage in the 80’s UK and usually backed up by an endowment policy. However when interest rates fell it was clear that endowment policies would not meet the required level by the end of the mortgage term so most sensible people converted to repayment mortgages.
Yes, you could have hoped that the appreciation in the value of the property would cover the loan but it is risky when there is property crash, of which there were a couple between 1980 and 2010. And recovery has been very slow since. It’s fine if you think growth will go on for ever but that isn’t likely.
Also you still will have a debt to repay at the end of your term. Fine if you want to sell but for those who buy property to live in what’s the point! I am happy to own my house after 25 years.
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07-02-2020, 02:05 PM #6
Might see this rolled out in HK:
https://www.scmp.com/business/bankin...s-credit-cards
Wouldn't mind paying interest only for a year!! At the moment only seems that its BOC offering it, but hopefully other banks will follow as well.
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10-02-2020, 01:47 PM #7
HSBC going all out for commercial clients. No word on personal loans / mortgage relief.
https://www.scmp.com/business/bankin...lief-hong-kongHSBC said on Sunday that it will provide more than HK$30 billion (US$3.9 billion) in additional liquidity relief to Hong Kong businesses pressured by the effects of the coronavirus outbreak on the city’s economy.
The bank, one of three lenders authorised to issue currency in the city, said it would now allow taxi and public light bus operators to make interest-only payments for six months and borrowers of property-secured commercial loans to do so for up to one year if they apply by June 30. HSBC had been providing similar relief to small and medium-sized enterprise customers since September under two government loan schemes set up following months of street protests in Hong Kong.
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10-02-2020, 02:10 PM #8
BOC relief measures - https://www.bochk.com/dam/bochk/desk...EN.pdf?noembed
HSBC - https://www.about.hsbc.com.hk/-/medi...ng.pdf?noembed
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10-02-2020, 02:45 PM #9
Maybe not sending out tax bills (have yet to receive mine) is my financial relief from the HK government? By the time I receive the bill, I'm guessing it won't be due until 2021...
Or maybe it's like my water bill, which never comes...
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10-02-2020, 05:15 PM #10
Quote
Originally Posted by David4Maths:
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