Tag: mortgage

“High Mortgage” Plans: A Double-Edged Sword?

5 October 2018 - At the time of writing this column, HSBC has just raised the prime rate for the first time in a decade, from 5% to 5.125%.  This was not unexpected, though officially signals that we’re at the end of a long cycle of cheap financing.  Facing the start of a new interest rate environment, should buyers choose high mortgage plans to
By: Joshua Han Miller

Bank Mortgage vs Property Developers' Mortgage

10 March 2017 - Mortgages offered by developers hit headlines in June 2016 when Sun Hung Kai Properties offered Hong Kong homebuyers a mortgage of up to 120% provided that borrowers pledged their existing property as security.  This prompted a public statement from Arthur Yuen - the Deputy Chief Executive responsible for banking in the Hong Kong

What to Prepare before Buying a Home in Hong Kong

Buying a home in Hong Kong as with buying property anywhere requires extensive forethought and research. From personal contextual requirements to vendor issues and legal regulations, the following advice aims to map out the key points of consideration for the first time home buyer in Hong Kong.  Personal Requirements These form the base criteria

Cheung Kong sells 100 new units in 1.5 Hours with counter mortgage offer

9 March 2015 - Since the adoption of the new mortgage-tightening measures, the first round of new developments were released to market yesterday. Cheung Kong, the biggest property developer in Hong Kong, sold 108 units of its new development, La Lumiere, in just 90 minutes.Offering an exceptional 90% mortgage to first-time buyers, these small-size

New mortgage-tightening measures to suppress overheated small-sized residential market

28 February 2015 - A deal-breaker to many potential homebuyers, the Hong Kong Monetary Authority (HKMA) announced a new round of measures yesterday to further tighten property mortgage loans. With immediate effect, the maximum loan-to-value (LTV) ratio has been lowered from 70% to 60% for self-use residential properties priced below HKD7M. In othe

Jacinto Tong: Multiple mortgage will trigger property bubble in 3 months

13 February 2015 - With a proven track record of accurate predictions, Jacinto Tong, CEO of the Gale Well Group, recently blogged about a potential property bubble burst in Hong Kong. His claim that the ‘bubble will burst within 3 months for lower budget properties’, has sparked a heated debate around the city.In the post, Tong points out that pro

HKMA introduces new mortgage assessment regulations to suppress property investors

22 January 2015 - Effective from 20 January 2015, The Hong Kong Monetary Authority (HKMA) has adopted new measures to further tighten mortgage lending practices of banks in Hong Kong. Some analysts regard the act as another deterrent to property investors and a way of suppressing inflating property prices. After reviewing the effectiveness of the

Peter Churchouse's Real Estate Rule #7: Leverage Debt Wisely

Peter Churchouse is the founder of Portwood Capital, a leading real estate investment company. With more than three decades of experience in real estate investment and research he is widely considered one of the world’s foremost authorities on Asian real estate markets. He is also author of The Churchouse Letter, his financial newsletter which pro
By: Peter Churchouse

Residential mortgage loans in negative equity decrease to a single case

28 October 2014 - The Hong Kong Monetary Authority yesterday announced the results of its latest analysis on residential mortgage loans (RMLs) in negative equity. The report shows that the estimated number of RMLs in negative equity decreased to 1 case at the end of September 2014 from 30 cases at the end of June 2014.  In addition, the report sai
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