Becoming a homeowner is one of the biggest life milestones you can reach, so undertaking research can feel daunting. Nonetheless, you can still find the home of your dreams. Keep reading for a step-by-step guide to purchasing a home in Hong Kong.
First, plan your budget. Research Hong Kong’s mortgage policies and stamp duty rates to gain a better understanding of Hong Kong’s property market conditions. To gauge your financial situation and repayment ability, use mortgage calculators and valuation tools on bank websites or Squarefoot. This in turn helps you set a realistic budget for yourself as you find a new home.
When house-hunting, the most time-efficient option is to work with a licensed real estate agent. They will have the resources to locate better deals with your needs in mind and help you negotiate home purchase prices. Another alternative is to scour listings online. However, be mindful of scams, don’t take house photos at face value, and, of course, visit the property in person before purchasing.
Before applying for a mortgage, conduct a property valuation. Pay attention to property condition, size, and layout. Go to several banks for your property valuation to get the most accurate figure to boost your chances of securing a mortgage. This is because it’s less likely that you’ll secure a loan if your home is 10 per cent above or below market value.
When you apply for a mortgage, prepare documents such as the last 3-6 months of bank statements and income proof. There are two main types of mortgage plans: H-Plan (HIBOR) and P-Plan (Prime-based).
HIBOR stands for the Hong Kong Interbank Offered Rate. This is the base rate that closely follows interest rates in the money market. The key thing to know about the H-Plan is that it fluctuates, so you can save interest when HIBOR interest rates are low. However, you will have to account for fluctuations in these rates. So if you think you can handle these changes, consider going for the H-Plan. Conversely, the P-Plan mortgage refers to Prime-based mortgage Interest rates here are based on The Hong Kong Dollar Prime Rate, not market movement. This is ideal for homebuyers who prefer stability.
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| Property Type | Price | Ads Period |
|---|---|---|
| For Sale Property | ||
Normal Listing Typical One | HKD:1000 (or Hsemoney:1000) | Valid:90 days |
Golden Top Listing Higher position than Top listing 2-3times better performance | HKD:3000 (or Hsemoney:3000) | Valid:60 days |
| Rental Property | ||
Normal Listing Typical One | HKD:1000 (or Hsemoney:1000) | Valid:80 days |
Golden Top Listing Higher position than Top listing 2-3times better performance | HKD:3000 (or Hsemoney:3000) | Valid:60 days |
