A few years ago, HIBOR was low, so many applicants preferred H Plan over P Plan. However, HIBOR has increased a lot in recent years and many mortgage borrowers end up using the capped mortgage rate to repay their monthly mortgage. Given this situation, the interest rate of H Plan and P Plan are much closer now. If you’re shopping for a mortgage, an 銀行按揭 calculator can help you compare estimated monthly payments, based on the type of mortgage, the interest rate, and how large a down payment you plan to make. It also can help you determine how expensive a property you can reasonably afford.
To learn more about our Packaged Banking Service, please click here for details. Whether you are buying a new property or arranging refinance on your mortgaged property, we will customise the right package for you. A mortgage recast takes the remaining principal and interest payments of a mortgage and recalculates them based on a new amortization schedule. A 5/1 adjustable-rate mortgage is an ARM that maintains a fixed interest rate for the first five years, then adjusts each year after that.
Mortgage Insurance ProgrammeLower your down payment on a house with mortgage loan ratios of up to 90%. Find terms that work for you with our variety of repayment plans. On the other hand, mortgage brokers originate loans in the name of financial institutions and organizations. Regarding full disclosure, they need to disclose the additional fee charged to the consumer under federal and state laws. Some mortgage banking companies operate nationwide whereas some may originate a larger loan volume as opposed to operating nationwide. By starting your application online, or by meeting with a mortgage loan officer.
Whether you are buying your first flat, adding your investment portfolio or refinancing, we can tailor the ideal mortgage plan to your needs. Your mortgage account and Designated Current Account will share the same interest rate. For the latter one, interest is calculated based on your daily balance and you are able to earn more interest income than what it is generated from a general HKD savings account. Customers may choose to make their repayments on a fixed installment, a fixed amount or a fixed repayment principal basis or by a bi-weekly repayment schedule, whatever suits their budget best. The interest on the repayment is calculated according to the reduced principal. You should have assessed your repayment ability and avoid over-borrowing.
Residential MortgagesApplicable to purchasing of first-hand and second-hand properties, or refinancing of mortgage loan. The above products & services are bound by relevant terms and conditions. The Bank reserves the right to terminate the above promotions at any time or to vary the same and/or the related terms and conditions from time to time without prior notice. Should any dispute arise, the decision of the Bank shall be final and conclusive. In case of any discrepancy between the English and Chinese versions, the English version shall always prevail.
However, some banks may offer ‘80- age of the property ’ with a higher interest rate. Civil servants enjoy non-accountable cash allowance schemes to subsidise their mortgage for up to 10 years, according to terms of appointment, length of service, salary, etc. This subsidy can be taken into account together with your monthly income when taking the stress test. Banks are usually more conservative towards second-hand property than new build property.
If your property is worth under HK$6,000,000 and its loan-to-value ratio is over 60%, you’ll need to apply to “mortgage insurance companies” for your mortgage insurance. LTV ratio is dependent on a number of factors , including different types of property and mortgage applicants. For example, first-time buyers could apply for up to 90% LTV ratio for property worth HK$8,000,000. Also, white form buyers of HOS, for example, could apply for 90% LTV mortgage.
To avoid down valuation, you can get valuation from different banks for comparison or call the valuation department of the bank directly. You can take your best valuation and negotiate with the bank that you would like to apply. Moreover, some people may choose to apply for a personal loan for the additional down payment that they need to pay due to down valuation. A borrower must apply for a mortgage through their preferred lender and ensure that they meet several requirements, including minimum credit scores and down payments. Mortgage applications go through a rigorous underwriting process before they reach the closing phase. Mortgage types vary based on the needs of the borrower, such as conventional and fixed-rate loans.
HIBOR fluctuates more, and mortgage interest rate calculated with reference to HIBOR is usually subject to a cap. Prime rate is relatively stable, but the Prime rate offered by each bank can be different. Borrowers should check the effective mortgage interest rates when shopping around for the best value plan. When choosing a mortgage tenor, you should consider your financial condition and repayment ability.