Best mortgage HK?
Join Date: Dec 2006
Location: Earth
Posts: 67
Likes: 0
Received 0 Likes
on
0 Posts
I'm not a expert on this topic. My first language is not English. So don't make fun off me when I try to post something. 
The way I understand it: There is two type of mortgages. Prime + X% and/or HIBOR.
Prime + X% is the most expensive in terms of the interest you have to pay. So the best option is to go for HIBOR. (This option is still protected by the Prime + X% but with X being a bit higher).
Here's to scenarios for the CX scheme with 2 different banks.
1. BOC. You have a HIBOR mortgage, term 20 years and the interest rates go's up. Therefore you simply increase the 20 years to lets say 25 years to be able to pay it with the CX allowance.
2. HSBC. You have HIBOR mortgage, term 20 years and the interest rates go's up. But you cannot increase your term if interest rates go's up so the extra amount now have to come from your own pocket. (OUCH!)
So to be safe you go HSBC Prime +X% or BOC HIBOR.
Cheapest BOC. Winner BOC.
This is how I understand it. I might be wrong so check this with your bank.
Use Frances, with her contacts at HKMC you will get approved.
The way I understand it: There is two type of mortgages. Prime + X% and/or HIBOR.
Prime + X% is the most expensive in terms of the interest you have to pay. So the best option is to go for HIBOR. (This option is still protected by the Prime + X% but with X being a bit higher).
Here's to scenarios for the CX scheme with 2 different banks.
1. BOC. You have a HIBOR mortgage, term 20 years and the interest rates go's up. Therefore you simply increase the 20 years to lets say 25 years to be able to pay it with the CX allowance.
2. HSBC. You have HIBOR mortgage, term 20 years and the interest rates go's up. But you cannot increase your term if interest rates go's up so the extra amount now have to come from your own pocket. (OUCH!)
So to be safe you go HSBC Prime +X% or BOC HIBOR.
Cheapest BOC. Winner BOC.
This is how I understand it. I might be wrong so check this with your bank.
Use Frances, with her contacts at HKMC you will get approved.
Last edited by Happydays; 30th Jul 2012 at 07:44.
Join Date: Sep 2007
Location: asia
Posts: 947
Likes: 0
Received 0 Likes
on
0 Posts
Gone up over 80% in 3 years
Just curious.
Join Date: Jan 1999
Posts: 275
Likes: 0
Received 0 Likes
on
0 Posts
Greed?
Indicators of an over priced market (aka a Bubble):
1. Rental Returns are abysmal and do not justify prices.
2. Huge speculative investment with 'funny money' going on.
3. Over supply of mortgage liquidity.
4. Falsely low interest rates (driven by US economy, rather than HK economy).
5. Massive over-supply (up to 30% of HK units reputedly lie empty).
6. Market manipulation by Developers and their lacky Politicos.
7. Growing majority of locals priced out of the market.
Contrary to what some previous posters have said, Property is a great way to make a fast buck.
If you time it right.
Time it wrong - even just a few weeks or months wrong, and you have a rapidly depreciating and illiquid investment which will break your back.
Greed ensures most investors time it wrong.
There is no such thing as a 'soft landing'.
When Bubble property markets burst they go off a cliff, overnight.
The biggest Property Market Cliché? "It won't happen here".
Property prices in some Western countries have fallen by over 60% in the last 4 years - and are still falling. They used to say "It won't happen here. Boom and Bust is history.' Ho Hum.
Buyer Beware.
Official Disclaimer: I own 4 properties, but in diverse countries, ALL mortgage free and in positive equity. I own NOTHING in Hong Kong.
Not interested, thanks.
Indicators of an over priced market (aka a Bubble):
1. Rental Returns are abysmal and do not justify prices.
2. Huge speculative investment with 'funny money' going on.
3. Over supply of mortgage liquidity.
4. Falsely low interest rates (driven by US economy, rather than HK economy).
5. Massive over-supply (up to 30% of HK units reputedly lie empty).
6. Market manipulation by Developers and their lacky Politicos.
7. Growing majority of locals priced out of the market.
Contrary to what some previous posters have said, Property is a great way to make a fast buck.
If you time it right.
Time it wrong - even just a few weeks or months wrong, and you have a rapidly depreciating and illiquid investment which will break your back.
Greed ensures most investors time it wrong.
There is no such thing as a 'soft landing'.
When Bubble property markets burst they go off a cliff, overnight.
The biggest Property Market Cliché? "It won't happen here".
Property prices in some Western countries have fallen by over 60% in the last 4 years - and are still falling. They used to say "It won't happen here. Boom and Bust is history.' Ho Hum.
Buyer Beware.
Official Disclaimer: I own 4 properties, but in diverse countries, ALL mortgage free and in positive equity. I own NOTHING in Hong Kong.
Not interested, thanks.
Last edited by Algol; 30th Jul 2012 at 16:51.
