It will include two incomes, which makes it easier to pass the stress test. However, both applicants will lose first-time buyer status, making it impossible to apply for a high LTV ratio in the future. You must switch to a buy-to-let mortgage with 50% LTV (instead of 80/90%) in order to rent out your home. If you fail to do this, and get caught, you will be in breach of the terms and conditions of your mortgage – which was meant to be used for owner occupation. Then, lenders can recall your mortgage and request you to pay for relevant interest rates and admin fees. Buying a property involves a lot of legal procedure and documents, including confirming the title, signing of formal agreement for sale and purchase, deed execution, etc.
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. The maximum mortgage loan amount is capped at 90% of the property value and subject to relevant loan amount cap. Final approved loan amount is subject to decision of the HKMC Insurance Limited. Find terms that work for you with our variety of repayment plans. He also expected the residential transaction volume in the first half of the year to be lower than that of the same period last year.
Better manage your cash flow with loans to cover a variety of expenses. We offer a range of loan types to meet your unique financing needs. Secure your mortgage finance early with our up to 180-day advance application service. One in three consumers will abandon a purchase if they cannot pay for it digitally. The bank that you have applied for will contact you directly 📞to collect the necessary documents. Applicants can get in touch with the mortgage department directly for future inquiries.
To pass the test, it requires the applicant’s DSR to be less than 60%. Occasionally, there are foreclosure buildings for sale in the market. If it was only because the original owner was unable to repay the mortgage due to debt problems, then it shouldn’t be difficult to obtain a mortgage. However, if it involves unauthorized construction, loss of property deeds, unclear title, etc., the mortgage will be affected. Therefore, it is important to conduct thorough research before purchasing. Refinancing Mortgage Loan Any Mortgage Loan originated in connection with the refinancing of an existing mortgage loan.
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. 4.The mortgage loan amount is capped at 90% of the property purchase price or property valuation provided that mortgage insurance cover is made available by HKMC Insurance Limited and subject to their latest guidelines and final approval. HKMC requires prospective homebuyers to pass the stress test in order to secure a mortgage offer. The monthly repayment amount should be within 60% of the homebuyer’s monthly income after 3% interest rate is added to the existing one. However, according to the 2019 policy address, passing the stress test is not a prerequisite for first-time buyers to secure a mortgage offer with a mortgage insurance programme.