Homeloan Rate
 

Hello All

Was wondering if anyone could tell me the average interest rate charged by the banks for a homeloan to Cathay staff?

HSBC are giving 1.28% fixed for 12 months, then 2.3% for the remainder of the loan, offer on until end of july.

Colonel

I don't believe any fixed-rate mortgages are being offered by any of the Hong Kong banks. I don't dispute the initial rate, but I am pretty sure the rate is a percentage under prime or the interbank lending rate for the rest of the term, so in effect it floats with prime.

What is prime in Hong Kong at the moment?

The initial rate is fixed at 1.28% for the first year, or 1.18% if the property is more than $3million.

Captain Underpants you are correct. The current prime rate is 5% variable. The rate charged for the rest of the loan is the prime rate P, minus 2.7%.

So at the moment it would be 5%-2.7%=2.3%

The bank will only loan you the money over a time period determined by a formula:

50-(Age of the building)=Maximum repayment period.

Eg 30 year old building, maximum repayment period 20 years.
35 year old bldg, 15 yrs.

I believe it used to be 40-age but has been increased.

The bank can only lend you 70% of the property Value. You can borrow an additional 20% to take the total up to 90%. However you must pay a premium to the Hong Kong Mortgage Corporation (a goverment agency) to cover the additional 20%. This varies with the tenure of the loan and the pecentage above 70% you want to borrow.

There is more to this but I think I should get a 2nd job as a mortgage advisor first.... :}

Do they give mortages like that to Freighter pilots buying a home in, say, Canada?

No only Hong Kong:8