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Prime Rate
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| posted by Zebedee 156 days ago (edited 156 days ago) |
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HKMA cut a further 50bps following Fed decision last night. Phoned up, just been offered re-mortgage deal P- 3.15% and this particular banks Prime rate is now 5.75%....so 2.60% Mortgage deal....unreal !
Whatever...
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| The Designer |
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| posted by HKBloke 156 days ago |
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which bank ?
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| posted by puyi 156 days ago (edited 156 days ago) |
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if inflation is currently runnning at 5% and there is no recession in hong kong and there is a large surplus why would we need to lower interest rates ??? the reverse should be happening to slow inflation and slow down the over heated housing market
darren rudd is a sinophile
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| posted by Zebedee 156 days ago |
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China Construction Bank (Asia)....
Whatever...
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| posted by smog 156 days ago (edited 156 days ago) |
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HSBC's P should now be 5.5% and I have P-3 on the base mortgage (so 2.5%) and P-2.75 (= 2.75%, with better repayment terms) on the top-up after the valuation went up.
It is indeed time to take as much free money as possible and get it invested (even if only in 7%+ NZD deposits).
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| posted by spannermonkey 156 days ago |
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Same here. Looking forward to my revised schedule from HSBC quoting a 2.5% rate......I also hear that the Fed is planning a further 75bps?
http://www.marisamiller.com
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| Newbie |
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| posted by Zebedee 156 days ago |
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Not so fast peeps, HSBC just announced only cutting 25 basis points.....
Whatever...
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| posted by smog 156 days ago |
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Aiyaa! So that means I'll actually have to pay 2.75% on my base mortgage. It's still pretty close to free money.
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| The Designer |
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| posted by HKBloke 156 days ago |
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Like a lot of people we are also thinking of dipping our toes into the HK property market.
Is it really worth the hassle spending time and effort shopping around for a mortgage or should we just stick with the bank we have a 7 yr relationship with i.e. HSBC.
i.e. Is there much of a market for mortgage rates/offers in HK or are the banks pretty much the same.
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| posted by Gimpmask 156 days ago |
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Bloke, I did some shopping around in August and I found Construction Bank to be the most competitive. I did not even bother trying HSBC but did try Hang Seng and Standard Chartered as well as Chong Hing, DBS, ICBC, Bank of East Asia etc.
There are some differences between what the banks offer. You have to look at other factors such as penalty for early redemption, rebates etc.
All in all, I'm very happy with Construction Bank.
Also note that different banks use different prime rates.
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Savage Local
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| The Designer |
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| posted by HKBloke 156 days ago |
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Gimp - thanks.
Are there any good sites that compare HK mortgage offerings and the prime rates used by the various banks.
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| posted by Gimpmask 156 days ago |
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I actually went into the branches and got the info. Because (especial now) of the fluctuations in interest rate, there isn't much point looking at websites. Best to find your place and paid your 10% deposit then go and speak to them and find the latest deal.
Also note that they would also need to do their own valuation of the property. So if one bank values your property at a higher/level level, it may affect the maximum amount you can borrow.
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Savage Local
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| The Designer |
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| posted by HKBloke 156 days ago |
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Sorry to ask so many stupid questions but once you have paid your 10% deposit is the property 100% yours or can you still be guzumped by the seller if they get a better offer ?
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| Regular Member |
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| posted by smog 156 days ago (edited 156 days ago) |
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When you pay your deposit (mine was 5% not 10%) you sign a Preliminary Sale Agreement which covers this sort of stuff. Essentially they can gazump you but they have to pay a penalty for doing so. I seem to remember for mine that it was they had to pay me back double what I paid them if they did so (in other words the new offer would have to be more than 5% higher for it to make sense).
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| The Designer |
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| posted by HKBloke 156 days ago |
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OK got it thanks.
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| posted by Gimpmask 156 days ago (edited 156 days ago) |
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Just a slight variation to smog, and I think this is the way it is done [pedant] by us locals [/pedant].
You pay 1% as the initial deposit on the day you sign the preliminary contract. You then have 14 days to enter in the full contract whereby you pay the remaining 9%. The balance (90%) is to be paid upon completion (probably 2 months down the line, just enough time for you to sort out the mortgage) where title deeds have been checked by your solicitor and the property is assigned to you.
If they renege on their deal, they will have to pay you back your deposit with interest (which is neglible now anyways). You can try to sue for damages (unlikely you can force the vendor to complete) but I don't think it's worth it given the time that may take for the case to be heard, the cost etc. Just go find somewhere else.
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Savage Local
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| 4601 Posts |
| of trenchancy |
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| posted by smog 156 days ago |
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I guess there are no standards here then. My completion only took 4 weeks by the way. But yes, my purchase was from another expat, albeit mediated by a local agent and local solicitors.
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| The Designer |
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| posted by HKBloke 156 days ago |
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And what about agents. Any good ones you can recommend or do you just walk into the highstreet shops in the area you are looking at.
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| posted by Gimpmask 156 days ago (edited 156 days ago) |
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Which area do you have in mind? I don't know if it's DB.
Some agents are terrible, know jack s**t and complete time wasters.
My one was really good and gave me a discount.
Smog, you are probably right. There is no fixed time for completion. It just depends on the parties. You need to make sure you have enough time to get your mortgage approved and the vendor has enough time to move etc. So sometimes completion can be 3 or 4 months.
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Savage Local
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| The Designer |
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| posted by HKBloke 156 days ago |
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western mid-levels / Sheung Wan
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| posted by Gimpmask 156 days ago (edited 156 days ago) |
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PM'd details to you.
ps you must be loaded or something. Prices around there are as nutty as our Britney.
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Savage Local
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