November 30, 2021
Mortgage FAQ | Mortgage Help and Interest Rate Questions

Mortgage FAQ | Mortgage Assist and Curiosity Price Questions

You’ll usually want to supply the next paperwork whenever you submit your mortgage software. 

 

For software below particular person identify(s)

  • Hong Kong ID Playing cards or passports of all debtors (and guarantors, if any)
  • For a newly bought property:
    –    Provisional or Formal Sale & Buy Settlement
  • For refinancing an present mortgage in opposition to a property you already personal:
    –    reimbursement data out of your present mortgagee financial institution displaying the final three month’s funds, AND;
    –    the reimbursement schedule in your present mortgage, AND
    –    handle proof for self-occupancy, if relevant
  • Financial institution statements displaying your wage deposits for the final three months
  • Proof of your employment, which may very well be:
    –    your newest tax demand notice, OR;
    –    your newest employer’s tax return notice, OR;
    –    different earnings proof paperwork issued by your employer.

 

For an software below the identify of a shell firm

  • Hong Kong ID Playing cards or passports of all guarantors
  • For a newly bought property:
    –    Provisional or Formal Sale & Buy Settlement
  • For refinancing an present mortgage in opposition to a property you already personal:
    –    reimbursement data out of your present mortgage lender displaying the final three months’ funds,  AND;
    –    the reimbursement schedule in your present mortgage, AND
    –    handle proof for self-occupancy, if relevant
  • Financial institution statements displaying every guarantor’s wage deposits for the final three months
  • Proof of every guarantor’s employment, which may very well be:
    –    the most recent tax demand notice, OR;
    –    the most recent employer’s tax return notice, OR;
    –    different earnings proof paperwork issued by the guarantor’s employer.
  • Enterprise Registration Certificates or Certificates of Incorporation of the shell firm
  • Minutes of assembly approving the mortgage software and indicating mortgagee financial institution, property handle and mortgage quantity

 

Is there any cost for a mortgage software?

No charge is charged whenever you apply for a mortgage mortgage. Nevertheless, if in case you have accepted our supply and don’t draw down the mortgage inside the interval acknowledged within the supply letter, we’ll cost a cancellation charge of 0.15% of the mortgage quantity.

 

How a lot can I borrow?

Chances are you’ll use the Mortgage Calculator to grasp how a lot it is possible for you to to borrow. This calculation is for illustration and your reference solely.

 

Does HSBC settle for mortgage software referrals from intermediaries?

We solely settle for mortgage software referrals from our appointed mortgage property brokers, together with:

  • Centaline Mortgage Dealer Restricted
  • mReferral Mortgage Brokerage Companies
  • Ricacorp Mortgage Company Restricted
  • Solar Hung Kai Actual Property Company Ltd
  • U Mortgage Restricted
  • Hong Kong Actual Property Companies Normal Affiliation
  • Cybernetics 1 Restricted
  • Many Wells Property Agent Restricted

 

For enquiries of the record of designated property brokers, please name our Mortgage enquiry hotline at 2748 8080, press “4”for mortgage providers.

 

Can I select my very own solicitors’ agency?

Sure, you’ll be able to select a solicitors’ agency to advise you on the mortgage. 

Nevertheless, if you need the identical agency of solicitors to behave for each you and the Financial institution, the agency you’ve gotten chosen have to be agreed by the Financial institution, in any other case they won’t be able to behave for the Financial institution as properly, and we might want to appoint one other agency of solicitors to behave for the Financial institution. 

Please additionally notice that that you must bear the authorized value for the mortgage transaction. If there are two completely different corporations of solicitors performing for you and for the Financial institution, you will have to bear the authorized prices of each corporations of solicitors. Every agency could cost additional charges for the extra work in reviewing the opposite agency’s documentation and accordingly, the authorized value for such association could also be increased than utilizing only one agency of solicitors agreed by the Financial institution to signify each events.

 

Do I’ve the selection on the solicitors’ agency to behave for the Financial institution?

Sure, you’ll be able to select the solicitors’ agency to behave for the Financial institution however this agency have to be accepted by us.

 

Do I would like to rearrange fireplace insurance coverage for the mortgaged property?

Sure, it’s your accountability to rearrange fireplace insurance coverage in opposition to fireplace threat and allied perils. Alternatively, if there could also be a grasp coverage already in place in your property which is suitable by us, you’ll be able to undertake the grasp coverage as an alternative of taking out a separate fireplace insurance coverage. Please examine along with your property’s administration firm to search out out extra in regards to the grasp coverage in your property.

 

Can I select my very own insurance coverage firm to rearrange fireplace insurance coverage?

Sure, you’ll be able to select the hearth insurance coverage firm which is agreed by us or your chosen insurance coverage firm that meets the standards of the Financial institution occasionally. Please contact HSBC department for extra particulars.

 

Can I select my very own fireplace insurance coverage supplier?

Sure, you’ll be able to select your personal fireplace insurance coverage supplier agreed by us.

 

What are the choices for repaying my mortgage?

Mortgage reimbursement choices embrace:

  • month-to-month or fortnightly reimbursement frequency
  • mounted instalment quantity or mounted mortgage tenure
  • straight-line or step-up repayments

 

Contact HSBC department for particulars of the choices accessible in your mortgage.

 

Can I modify my mortgage repayments?

To alter the quantity or frequency of your mortgage repayments, please contact HSBC department. There could also be a cost for making this variation: see the prevailing Financial institution tariff information for HSBC Retail Banking and Wealth Administration Prospects for particulars.

 

Can I modify to a unique mortgage?

To alter your mortgage plan, contact HSBC department to examine your eligibility for different mortgage plans. There could also be a cost for making this variation: see the prevailing Financial institution tariff information for HSBC Retail Banking and Wealth Administration Prospects. for particulars.

 

Can I repay some or all of my mortgage early?

To rearrange early reimbursement of your mortgage, contact HSBC department. There could also be a cost for early reimbursement: see the most recent Financial institution tariff information for HSBC Retail Banking and Wealth Administration Prospects and your mortgage facility letter for particulars. 

If the costs within the Financial institution tariff information are completely different from the mortgage facility letter, the mortgage facility letter will prevail.

 

Are there any temporary highlights to notice if I’m a non-Hong Kong resident going to use for a mortgage?

 

Take into account it if … 

  • you aren’t residing in Hong Kong whilst you buy a Hong Kong property
  • you’ve gotten reserved additional fund for increased downpayment because the Mortgage-to-Worth ratio could also be lowered in case your earnings is principally derived from exterior Hong Kong
  • you might be conscious of and have ready ample fund for added authorities tax (together with stamp obligation) fee and/or different taxation association (if relevant) which applies to non-resident shopping for a Hong Kong property
  • you perceive the potential threat of shopping for a Hong Kong property if you are not residing in Hong Kong, comparable to authorities tax, housing coverage and/or forex fluctuation threat

 

Not think about it if …

  • you haven’t ready additional fund for downpayment when the Mortgage-to-Worth ratio could also be lowered resulting from your earnings primarily derived from exterior Hong Kong
  • you haven’t organized fund for added authorities tax (together with stamp obligation) fee and/or different taxation association (if relevant) which applies to non-resident shopping for a Hong Kong property
  • you aren’t prepared to take the doubtless increased threat of shopping for a Hong Kong property if you are not residing in Hong Kong, comparable to authorities tax, housing coverage and/or forex fluctuation threat

 

Highlights in your greatest curiosity

  • You have to be conscious of the potential threat in the event you, as a non-Hong Kong resident, apply for a mortgage over a property finding in Hong Kong, for instance, authorities tax and housing coverage occasionally relevant to non-Hong Kong residents shopping for a Hong Kong property, and the decreasing of Mortgage-to-Worth ratio for mortgage mortgage. It’s best to think about the forex fluctuation threat, if the forex of the mortgage is completely different to the forex of your earnings or that you must make cross-border mortgage repayments
  • We are going to assess your software by making reference to credit score report from a credit score reference company “TransUnion Restricted”, your earnings proof, different data submitted the place relevant in addition to the prevailing regulatory necessities in Hong Kong
  • To make sure your understanding in your obligation and dedication through the mortgage interval, please notice and agree all phrases and situations acknowledged within the mortgage mortgage facility letter together with however not restricted to the mortgage rates of interest, frequency of fee, reimbursement quantity, variety of installment and full/partial prepayment time period
  • Everytime you face monetary problem in mortgage reimbursement, an overdue/default curiosity, on prime of regular curiosity, will likely be levied. In case your fee can’t be resumed to regular, we reserve the proper to repossess your property to settle the excellent mortgage mortgage quantity
  • To guard your property from depreciation attributable to structural harm ensuing from catastrophe through the mortgage mortgage interval, you might be required to rearrange fireplace insurance coverage with an insurance coverage firm acceptable by us to supply insurance coverage protection to cut back the potential loss
  • To reduce any unlucky occasions affecting your private home contents and your potential to repay the mortgage, you would contact us to grasp extra on associated safety