I want to purchase a second-hand property

Mortgages

If the purchaser needs to choose a bank or financial institution for loans, the purchaser should consider the following:

• the property valuation and mortgage amount offered; (Whether the property is for self-use or rental may affect the mortgage amount);
• the term for repayment, number of instalments and amount of each instalment;
• the criteria for determining interest rates;
• the date for implementing interest rate adjustments;
• the issues arising from arrears in instalments, for example, interest rates;
• the early repayment/ redemption penalties and the notice period;
• mortgage handling fees, legal fees, insurance fees and charges for the valuation report, etc.

Generally speaking, it may be more difficult for the self-employed, people with irregular incomes and the retired to be granted a mortgage loan. Besides, the Hong Kong Monetary Authority may, in light of market conditions, tighten the debt-to-income ratio and the loan-to-valuation ratio for certain groups of people and properties.