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Village house - best bank/non-bank mortgage/loan providers?
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| posted by pstjmack 188 days ago |
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We're buying a village house on Lantau. It's not backbreakingly expensive, but we'd like to get the best valuation and mortgage/loan package we can.
Does anyone know the best providers of village house purchase financing? This is our first house, and we want to use mortgage insurance to get the highest percentage mortgage we can. Also, if we can't get a good balance of valuation/mortgage percentage from a bank, we'll add in a top-up loan to hit our target.
We're already applying to the usual suspects - Mreferral, BoC, GE Money - but any other recommendations would be welcome, especially for non-bank finance companies.
Thanks!
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| posted by shazza 188 days ago |
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Try zis:
Inchroy Credit
Mr CK Poon
tel: 3669 2628
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| posted by RastaMan 188 days ago |
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Thanks spannermonkey. Actually I don't know anything. Were you sarcastic?  I give you the benefit of the doubt! 
BOCHK and Chinese Bank of Commerce (or something like this): 3.85%
BEA and Standard Chartered: 4.10 or 4.25, I don't remember.
I think the cash rebate is the same for every bank: 0.7%
Insurance for the additional 25% beyond 70% is 28,000 with BOCHK (if one off).
If you come across better deals (i.e. lower interest rates) than BOCHK can you post a message, so I borrow from them? Thanks a lot. 
I want to die peacefully in my sleep, like my Grandfather.
Not screaming and in terror, like his passengers.
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| posted by shazza 188 days ago |
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I thought the interest rates depend on yer wages too, no?
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| posted by smog 188 days ago |
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Well HSBC gives me 3.75% currently and the rebate was 1%. So what shazza says has some merit. And clearly the insurance for the additional 25% is going to be some percentage of that 25% not a fixed amount.
___________________________
http://smogsblog.wordpress.com for more of the same
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| posted by RastaMan 188 days ago |
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I really don't think that the interest rates depend on the wage. First time I hear that. Ever. Of any country in the world. But it might depend on the amount of money you borrow. Of course if you are a billionaire borrowing 250 million bucks they give you special rates.
No, the insurance is a fixed amount by BOCHK, but let me explain: 28,000$ if you want a one off insurance. Otherwise: 14,000$ the first year, and 4,800$ every additional year you want insurance. So if you borrow 95% of the mortgage you better pay 28,000$ insurance, if you borrow 71%% of the mortgage you better pay 14,000 insurance, etc.
I am surprised that HSBC asks for only 3.75%. I always thought that HSBC was the worst bank around, so didn't even bother asking. Thanks for the tip! I will check them out
I want to die peacefully in my sleep, like my Grandfather.
Not screaming and in terror, like his passengers.
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| posted by smog 188 days ago |
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So it costs me $28000 to insure the additional 25% whether it's $500K or $5M? I don't think so.
___________________________
http://smogsblog.wordpress.com for more of the same
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| posted by RastaMan 187 days ago |
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Yes, that's my understanding. Then of course you need to pay the interest rates for the money you borrow.
I want to die peacefully in my sleep, like my Grandfather.
Not screaming and in terror, like his passengers.
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| Regular Member |
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| 2806 Posts |
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| posted by spannermonkey 187 days ago |
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quote:
Originally posted by smog
Well HSBC gives me 3.75% currently and the rebate was 1%. So what shazza says has some merit. And clearly the insurance for the additional 25% is going to be some percentage of that 25% not a fixed amount.
That was my deal with the new place, but the 1% was put onto my credit card and the 3.75% is for the first 3 years of the tenure.
http://www.marisamiller.com
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| posted by migao 187 days ago |
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Eh, out of curiosity, what does that insurance actually mean. Insurance against what?
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| posted by spannermonkey 187 days ago (edited 187 days ago) |
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Insurance against you defaulting and the bank having to pay back the HKMC - which is a seperate organisation....
I think.
http://www.marisamiller.com
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| posted by RastaMan 187 days ago |
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quote:
Originally posted by spannermonkey
quote:
Originally posted by smog
Well HSBC gives me 3.75% currently and the rebate was 1%. So what shazza says has some merit. And clearly the insurance for the additional 25% is going to be some percentage of that 25% not a fixed amount.
That was my deal with the new place, but the 1% was put onto my credit card and the 3.75% is for the first 3 years of the tenure.
I was surprised to hear that HSBC would give good deals. 
What is the interest rate after these first 3 years?
I want to die peacefully in my sleep, like my Grandfather.
Not screaming and in terror, like his passengers.
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| Regular Member |
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| 7139 Posts |
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| posted by shazza 187 days ago |
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I have to rephrase, rates and offers depends on not just yer wages but yer financial record. If have nice and stable income plus pay yer bills on time without being blacklisted once, even HSBC will give you a very good deal.
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| posted by RastaMan 187 days ago (edited 187 days ago) |
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quote:
Originally posted by shazza
I have to rephrase, rates and offers depends on not just yer wages but yer financial record. If have nice and stable income plus pay yer bills on time without being blacklisted once, even HSBC will give you a very good deal.
As long as the income is within a 'normal' bracket, I really doubt that a bank would change its mortgage rate. Of course if Soros enters HSBC to borrow 10 billion dollars to screw 1 billion people he will pay a different interest rate than if I go into HSBC to borrow 3 million dollars to buy a flat, or an illegal Nepali immigrant goes into HSBC to borrow 100,000 dollars to try his lack at the race course. But if 3 people who earn between 30,000 and 100,000 dollars a month want to borrow between 2 and 10 million to buy a flat I am sure they will all have to pay the same mortgage rate.
I want to die peacefully in my sleep, like my Grandfather.
Not screaming and in terror, like his passengers.
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| Regular Member |
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| 4616 Posts |
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| posted by smog 186 days ago |
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RastaMan,
You really are very naive when it comes to banking.
As another example, because I have a Total Relationship Balance with HSBC above a certain level they have just offered me an extra 1.6% pa interest on 3 month USD time deposits (which, to be fair, brings them up to about market rates, but that isn't the point: they do offer better deals to "better" customers). My TRB is not of the Soros level.
___________________________
http://smogsblog.wordpress.com for more of the same
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| posted by CQFD 186 days ago |
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Nice and smart from HSBC.
Still wondering what will be the value of the Yankee $ in 3 months?
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| posted by RastaMan 185 days ago (edited 185 days ago) |
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smog, I know you get higher interest rates if you have more money in the bank. Both:
1) if you invest higher amounts (if you put 10,000$ in a time deposit for a week you might get 20% less interest rate than if you put $100,000 in a time deposit for the same period).
2) if you have more money in the account. At the BEA if you have more than HK$500,000 you can open a Supreme Gold account and you get 0.1% or so more on any time deposit, whatever the amount you invest.
You also get more money if you invest for longer periods. For example if you put $10,000 in a time deposit for a week you might get 20% less interest rate than if you invest the same amount for 1 year).
Everybody knows that. So what? We were talking about the mortgage rate, and I said and I repeat that the mortgage rate is the same for everybody, as long as your income and price of house fall within the 'normal bracket'.
Who is naive?
I rest my case.
No wait, one more thing: migrate from HSBC to BEA.
Cheers.
I want to die peacefully in my sleep, like my Grandfather.
Not screaming and in terror, like his passengers.
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| Regular Member |
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| 4616 Posts |
| of trenchancy |
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| posted by smog 185 days ago |
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Fine, so go to HSBC and ask them to give you the same deal because it's better than what you've been quoted so far: 3.75% (rising to 3.87% after the first 2 years) with a 1% credit back onto your credit card.
(The interest rate is actually defined as P-3% for 2 years then P-2.88 for the remainder of the term, which is 21 years in my case, where P is HSBC's so called "best lending rate".)
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http://smogsblog.wordpress.com for more of the same
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| Senior Member |
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| posted by Load Toad 185 days ago |
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..or ask your mum.
You used to speak the truth.
But now you're clever.
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| 113 Posts |
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| posted by RastaMan 184 days ago (edited 184 days ago) |
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quote:
Originally posted by smog
So it costs me $28000 to insure the additional 25% whether it's $500K or $5M? I don't think so.
You know what? You were right. The insurance is 3.98% of the amount you borrow. So from now on I will believe everything you say!
I am considering whether to buy or to keep renting. Because I would buy a larger property that I now live in, it only makes sense for me to buy if
1) the price of property will increase by more than 15% during the next 6 months while
2) the value of the Chinese Yuan increases by less than 5% during the next 6 months
This is because my contract expires in 6 months, and I am not sure it will be renewed (I believe my chances are 50%).
Also, if I buy in 6 months (once my contract is renewed) rather than now, I won't need to borrow as much, so I have less insurance to make.
Give me your insights, oh great smog.
I want to die peacefully in my sleep, like my Grandfather.
Not screaming and in terror, like his passengers.
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