Buying property in HK - advice please?

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  1. #11

    Join Date
    Oct 2009
    Location
    HK Island
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    23
    Quote Originally Posted by happypig:
    Thanks for the information, it is really helpful.
    The flat in DB that was nicely renovated, was only valued at about $2 mil by the banks, and they are asking $2.6. As we need to borrow 95%, this one will have to pass us by. I'm thinking, based on above suggestions, I will look for a real bargain and organise the reno myself later on when I'm a bit more cash-rich!
    hkken569 - I would love to have the contact details for the guy you recommend, it would be great to have someone who comes recommended.

    Thanks again everyone!
    I'm quite new to this and I've been thinking of buying a property maybe next year when I've saved enough.

    I'm wondering though, is it possible for banks here in HK to lend you 95% of the valuated amount? I thought it is a minimum of 80% only (and normally 70%)?

  2. #12

    Join Date
    Aug 2006
    Posts
    7,517

    Some banks offer 95% for example Standard Chartered


  3. #13

    Join Date
    Oct 2009
    Location
    HK Island
    Posts
    23

    thanks for the link. now, i wonder if this first time home buyer package also applies to people like me who is on employment visa.


  4. #14

    Join Date
    May 2009
    Posts
    675

    Stickboy - most banks will lend 95% of their own valuation. 70% is traditionally the standard, so for the extra 25% your application has to be approved by the HKMC and you'll pay a mortgage insurance premium for that extra 25%. That can be added to your mortgage so no extra initial outlay for you. I've talked to a lot of banks recently and the only one who didn't offer 95% mortgages was China Construction bank, they only went up to 90%.

    Being here on a work visa makes no difference - banks will still lend to you if you have a HKID card and meet the normal eligibility requirements.


  5. #15

    Join Date
    Feb 2009
    Location
    Tsuen Wan
    Posts
    416

    Working with the HKMC... If you are planning on getting over 70% mortgage. Sign with AT LEAST 2.5-3 months between signing the initial deposit and closing.

    If working with a 70% mortgage, 1.5 months is usually enough.

    Recently, I found that these banks are aggressively offering the best rate: HSBC (Real pain to work with though...), Bank of China, Wing Hang, and BEA. If you are cash rich then Standard Chartered, though you'll have to bank though them.


  6. #16

    Join Date
    Oct 2009
    Location
    HK Island
    Posts
    23

    thanks guys, these tips are very helpful.