Mortgage Interest Rates

[beachball]

Eh? If the interest rate goes up then either the monthly mortgage payment increase or the term increases. It cannot be any other way.

Correct, the change in the interest rate might (and generally does) affect the monthly payment - but not the repayment, i.e., the amount that goes toward reduction of the outstanding balance/principal amount.

[PDLM]

A subtle distinction which I don't think the previous poster was making.

[beachball]

A subtle distinction which I don't think the previous poster was making.

A pretty fundamental distinction that is relevant and important to understand, regardless of whether the previous poster was taking it into consideration or not.

[goldenhair]

Prime rate at HSBC is 5%. You should be able to get a rate of P-2.5 or P-3, meaning a rate of 2-2.5%. Tenor is 20-25 years. Remember that the prime rate will go up in the future (now it is very low), so you will see mortgage repayments increase.

They will approve a 30 year mortgage if you are young enough.

[Christickler]

Is 31 young enough?

Will they also take into account my mortgage in the UK, or do I even need to declare it?

[Geoff]

A subtle distinction which I don't think the previous poster was making.

A clear distinction which the previous poster was obviously making.

[Mr. No]

Is 31 young enough?

Will they also take into account my mortgage in the UK, or do I even need to declare it?

Just call the banks and ask them. The lowest mortgage rates of some of the banks: BEA 2%, HSBC 2.075%, Standard Chartered 2.1%, Wing Hang 2.5%, BOCHK +/-2.8%.

[goldenhair]

You will have to sign a declaration about any debts outside of Hong Kong - so yes you do have to tell them.

[hkken569]

Last week's latest...

The lowest recent offer I can find is from HSBC at the moment for net rate of 2.05% P -2.95% Their P is 5% at the mo. 1 year penaty period

Other banks that are eager for your mortgage business (at the mo) are Wing Hang & BOC.
Both banks offered net 2.15% with 1% rebate, P - 3.1%. Their P is 5.25%. 1 year penaty period also

May be mistaken, but there's no site that offers a an upodate comparsion on latest rates. You could try a mortgage broker like Mrefferal, but they have certain affliations and can sometimes only point you to certain banks.

Ken

[timklip]

here's a comparison I did after shopping around this week. I've left out the penalties since they won't be relevant to our situation. keep in mind this is the bank's initial offer subject to your own negotiation, and there may be additional incentives offered by certain banks (such as the Stan Chart one noted) to sweeten the deal.