Buying Residential Property in Hong Kong

What you need to know

Home Buying Procedures

Buying a home is probably one of the biggest financial decisions you can make. HSBC can provide advice and hints every step of the way to help you save valuable time and money.

A check list from beginning to end

1. Calculate how big a mortgage you can afford. Then start looking for properties. You can visit any HSBC branch and we can give you a detailed analysis using our Mortgage Planner software.
2. Approach HSBC for a preliminary valuation of your desired properties to get a rough idea of how much you can borrow.
3. Agree on a purchase price and transaction completion date. You will then be asked to pay an initial deposit and sign a provisional sale and purchase agreement.
4. Apply at HSBC for a mortgage. Appoint a solicitor for a land search and arrangement of legal documents.
5. Sign the formal sale and purchase agreement and make the down payment (usually around 10% of the purchase price) to the vendor.
6. Sign the other legal documents and arrange to pay the outstanding balance (partially or fully paid by your mortgage) to the vendor. For under construction property, additional legal documents will have to be drawn up on receipt of the occupation permit.
7. At last you will have the keys of your new home, and you can apply for our Personal Instalment Loan to get a low interest loan for home decoration according to your liking.

Other initial expenses you should know about

On top of the property price, you might have to pay:

• Solicitor fee including sale and purchase agreement, assignment deed and mortgage deed
• Government fee including stamp duty
• Property agent fee

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Types of Mortgage Plans

HSBC's Mortgage Advice Service is available to help you find the best mortgage plan for you with all of the services you need.

Home Mortgage Loan
Whether you are buying a property in the primary market (completed or not), secondary market, or refinancing your existing one with or without cash, we offer a variety of repayment plans to suit your needs.

Deposit-linked Mortgage Repayment Plan
With a Deposit-linked Mortgage Repayment Plan, you can enjoy a savings interest rate equivalent to mortgage loan interest rate for a specified amount of deposits in a HKD deposit-linked account under Premier, which offers you fruitful returns on your savings deposit and greater flexibility in managing your finances.

Investor Mortgage
If you are looking for an investment vehicle that offers you the potential for both capital appreciation and a steady income, property is an opportunity that is always worth considering. Whether you are buying a property which offers you attractive regular rental or the possibility of a long-term increase in value, our Investor Mortgage can perfectly meet your wealth management needs.

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Choosing the right mortgage repayment plan

As your trusted mortgage partner, HSBC offers a variety of mortgage repayment plans to suit your needs. Some are designed to help you own your home sooner and save on interest. We can explain the plans in details and guide you to the one that's best for you.

1. Straight-line repayment plan
You can enjoy a fixed repayment amount throughout the mortgage term. In early stages, the repayment mostly consists of interest. As the loan is gradually repaid, the proportion of principal repayment becomes higher. This plan is suitable for people earning a regular salary and who wish to maintain a fixed budget.

2. Reducing balance repayment plan
You make larger payments in the initial stages, so your repayment reduces during the mortgage term. This plan is useful if you have strong repayment ability in the early years and helps you save total interest over time.

3. Step-up repayment plan
In the first year, this plan has the same payment calculation method as the straight-line repayment plan. Afterwards, the payment gradually increases at a fixed step-up rate annually (between 1% and 10%, depending on your preference). By using this method, you can shorten your repayment period and reduce your interest expense. This plan is useful if the funds you can devote to your mortgage repayments will increase during the mortgage term.

4. Monthly and fortnightly repayment frequency
You can choose either monthly or fortnightly repayment frequency together with any of the above mortgage plans to repay your mortgage loan. With bi-weekly payments, you pay less interest and the principal is repaid more quickly.

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Local Requirements

• Loan-to-value ratio up to 70% of the residential property purchases price or property valuation (whichever is lower) except for those with mortgage insurance cover made available by The Hong Kong Mortgage Corporation Limited where higher lending ratio up to 95% could be obtained.
• Credit report(s) from a credit reference agency is/are required for all mortgage applications
• Approval of all mortgage applications is subject to local legal and compliance requirements and our credit policy.

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Let us tailor-make a plan for you
Using Mortgage Planner, you will have a clear idea of what it takes to buy a home based on your own circumstances. To get more information on property valuation and price trends in Hong Kong, please visit our Mortgage section.

Talk to us now and turn your dream home into reality!

Disclaimer:
Mortgages are subject to local legal and compliance requirements, credit policy, terms and conditions and HSBC's services available in each country.
This section is intended as a general guide for reference only. Benefits and features may be subject to local country regulatory restrictions. Please refer to the Premier Service Guide for detailed information.
The information contained in this section should not be relied upon as a substitute for professional advice in individual cases. Future changes in legislation, tax levels and practice could affect the information on this site.
The information shown is based on date or information obtained from sources believed to be reliable, but HSBC makes no representation and accepts no responsibility as to its accuracy or completeness, and will not be held liable for damages arising out of any person's reliance upon this information.
Information sourced from Census and Statistics Department, Immigration Department, and Information Services Department of Hong Kong SAR.