Are you looking to buy a house in Hong Kong? Or you want to refinance your home loan? Or you are looking for the best mortgage rates in Hong Kong. Read on.
ElitePersonalFinance did a significant research on all loan in Hong Honk. We did this because of the huge interested from people from Hong Kong. Facts were shocking! Although there are many legit places where people can get great loans, there are so many scam alters from people who pay insane fees. The reason is simple. Lack of information. Like in many other countries there are many loan scams. In Hong Kong this seems to be a booming business. Read on …
We will show you everything you have to know to get great home loan and actually find the best mortgage rates later in this guide, but now, lets move on with the good new!
Big changes in loan business significantly increased the chance for people to get a cheap bank loans!
Banking in Hong Kong will soon become easier, as most major banks compete to roll out a simpler process for approving small loans online, part of the city’s push to streamline banking to serve customers better and compete with fintech companies.
Under the Hong Kong Monetary Authority’s guidelines issued in May, lenders no longer require proof of address, or evidence of income, to qualify for small loans. This has changed how people apply for bank loans.
The new rules have been embraced by every major lender in Hong Kong, as they accept fintech as a better way to improve the efficiency of their customer service. Citibank, Standard Chartered Bank and Bank of China (Hong Kong) responded by waiving proof-of-income for existing customers, while HSBC and its Hang Seng unit said they too will follow suit.
The most important tip before getting a mortgage loan!
Why is there an interest rate and a comparison rate?
Due to Hong Kong laws and regulations, companies must display an interest rate and a rate that is inclusive of fees and charges. This is called an Annual Percentage Rate (APR) and is a crucial tool when comparing loans. For example, if a personal loan has an interest rate of 12.45% p.a but an APR of 14.52% p.a. it would indicate there is a range of fees included in the loan. If the loan has an interest rate of 10.13% p.a and the exact same comparison rate, then this indicates that there are no fees included in the loan. For a detailed view, read our guide to personal loan comparison rates.
Best loan Rates in Hong Kong 2020
|BANK / LENDING COMPANIES||LOAN PLANS||MAX. LOAN AMOUNT|
|Citibank||Speedy Cash||HK$2,000,000 or 12x monthly salary|
|DBS||DBS Debt Consolidation Loan||HK$2,000,000 or 21x monthly salary|
|Dah Sing||Dah Sing Express Money||HK$1,000,000 or 10x monthly salary|
|Bank of Communications||DreamCash Personal Loan||HK$1,200,000 or 12x monthly salary|
|Promise||Promise Easy Loan||HK$600,000|
|PrimeCredit||PrimeCredit Fixed Loan||HK$600,000 or 18x monthly salary|
|UA Finance||Real 0% Interest i-Money Internet Personal Loan||HK$100,000|
|AEON||AEON Flexi Loan||HK$800,000 or 8x monthly salary|
|Hang Seng||Hang Seng Personal Instalment Loan||HK$2,500,000 or 15x monthly salary|
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Tips to Get Better Mortgage Rates
Know and Always Work to Improve Your Credit Score
It literally takes a few minutes to pull your credit report and order your credit score. People always have to know and try to improve their credit score. Don’t allow bad loans, they can very negatively impact your credit score.
Save Your Cash
Requirements for getting a mortgage loan often change, and if you are considering applying for a home loan in the near future, be ready to cough up the cash. Walking into a lender’s office with zero cash is a quick way to get your home loan application rejected. Mortgage lenders are cautious: Whereas they once approved zero-down mortgage loans, they now require a down payment.
Stay at Your Work
I know someone who quit working seven days before she and her husband were to close on their mortgage loan. I have no idea why, and unfortunately, it didn’t turn out well for them. They weren’t able to close on their new home and they lost out on a great deal.
Pay Down Debt and Avoid New Debt
You don’t need a zero balance on your credit cards to qualify for a mortgage loan. However, the less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well as how much you can acquire from a lender. Lenders evaluate your debt-to-income ratio before approving the mortgage. If you have a high debt ratio because you’re carrying a lot of credit card debt, the lender can turn down your request or offer a lower mortgage. This is because your entire monthly debt payments — including the mortgage – shouldn’t exceed 36% of your gross monthly income. However, paying down your consumer debt before completing an application lowers your debt-to-income ratio and can help you acquire a better mortgage rate.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage loan before looking at houses is emotionally and financially responsible. On one hand, you know what you can spend before bidding on properties. And on the other hand, you avoid falling in love with a house that you can’t afford.
Know What You Can Afford
I know from personal experience that lenders do pre-approve applicants for more than they can afford. After receiving a pre-approval letter from our lender, my husband and I wondered whether they had read the right tax returns. We appreciated the lender’s generosity, but ultimately decided on a home that fit comfortably within our budget.
Don’t let lenders dictate how much you should spend on a mortgage loan. Lenders determine pre-approval amounts based on your income and credit report, and they don’t factor in how much you spend on daycare, insurance, groceries, or fuel. Rather than purchase a more expensive house because the lender says you can, be smart and keep your housing expense within your means.
Watch for Hidden Fees
So many people are getting scammed by hidden fees. Read the contract carefully and ask questions.