Things to Know If You’re Buying a HK$4 Million Home

400萬以下高成數上車必讀

Recently, many housing estates around Hong Kong have seen a dip in home valuations and selling prices, resulting in an increasing number of units that are selling at HK$4 million or below. For home seekers short on cash, this is great news. As most of the purchasers of these affordable homes are first-time buyers, they will try to get a 90% LTV mortgage through the Mortgage Insurance Programme (MIP). If that’s you, below are certain things that you need to pay attention to.

According to the regulations, the maximum LTV ratio is 80-90% for properties valued under HK$10 million and 50% for properties at HK$10 million or above. However, if you are a permanent Hong Kong resident with no property under your name and you are buying a home for self-use, you can apply for a loan from the MIP with an LTV ratio of up to 90%, which would significantly reduce the down payment. The MIP business is carried out by HKMC Insurance Limited (HKMCI) to lower the risks for banks that are approving home loans of a 60-90% LTV ratio.

The latest amendments to the MIP states that the LTV ratio is capped at 90% for properties valued at HK$8 million or below. MIP applicants have to satisfy two major conditions. Firstly, like all mortgage loan applicants, you will need to pass the HKMA’S stress test. For example, if you are buying a HK$4 million unit with a 30-year mortgage of a 90% LTV ratio, your monthly income has to reach a minimum of HK$38,247. Secondly, MIP applicants have to pay an insurance fee, which varies depending on the LTV ratio and the mortgage period. Usually, the fee is equivalent to 1.15-4.35% of your loan. It’s also worth mentioning that most banks now offer discounts of up to 40% for mortgage insurance fees. This means that if you’re taking out a HK$3.6 million loan for your HK$4 million home, your original insurance fee of HK$156,600 will now be HK$93,960 after a 40% discount. You can even combine the insurance fee into your mortgage loan so that it won’t add burden to your down payment.

In addition, those applying for a mortgage of a high LTV ratio must have regular salaries. With home prices currently experiencing downward adjustment, there might be a gap between bank valuation and the asking price. It’s therefore advisable to get a valuation before signing a provisional agreement with the seller.

Last but not least, high LTV ratio mortgage applications need to be approved by both your bank and the HKMCI. Getting an HKMCI approval takes around six to eight weeks and requires a number of documents, including a tax bill, salary slip and bank statement, among others, so make sure to reserve enough time and get your paperwork sorted.

近期多個屋苑的估價及成交價皆見回調，樓價400萬以下單位趨增，對於首期未必足夠的上車客來說，的確多了不少選擇。筆者相信，大部份購買樓價400萬以下單位人士很可能是首次置業，故可採用「按揭保險計劃」（下稱：MIP）承造高達九成按揭上車，以下將為大家解釋一下實際操作及要注意事項。

首先，根據規限，1,000萬元以下物業可造八至九成按揭，1,000萬或以上物業只可造最高五成。不過，未有成為物業借款人或擔保人，加上物業為自住用途的香港永久性居民，可申請MIP承造最高九成按揭上車，大大減低首期支出。MIP主要由按揭保險公司作為擔保，以減低銀行為置業人士提供六成以上至九成按揭貸款之風險。

根據按揭保險計劃最新修訂，樓價800萬或以下，最高按揭成數為90%（須固定受薪人士）。另外，申請MIP還要滿足兩個條件。第一，與其他申請人一樣，須通過金管局的壓力測試，假設購買400萬的單位，承造九成按揭，供款30年，每月入息需達到38,247元。第二，申請MIP需要繳交保費，視乎按揭成數及供款年期有異，約佔貸款額的1.15%至4.35%不等。不過，現時大多銀行會給予保費折扣優惠，最高約為6折左右，若上述例子借款360萬元，保費原為156,600元，6折後為93,960元；保費亦可加借於貸款額外，可不用騰出首期資金以繳交保費。

此外，提醒各位選用高成數按揭買家，如選用九成按揭人士須有固定入息。現時樓市回調，銀行估價有可能與賣家出價有落差，亦建議先向銀行估價才簽臨時買賣合約。

最後，由於高成數按揭申請分別需要由銀行及按揭保險公司批核，按揭保險公司審批要求較高，故需較長時間，大約6至8星期，文件需要亦較多，如稅單、糧單及銀行入息證明等，買家宜預留較多時間及文件以供批核。