Important Considerations for HOS Flat Owners When Switching to Mortgages

architecture-g3d37ecbc8_1920

Important Considerations for HOS Flat Owners When Switching to Mortgages

The Hong Kong government's Home Ownership Scheme (HOS) offers affordable housing to eligible residents at prices below the market rate. HOS flats come with two types of mortgages: land premium paid and land premium unpaid. While those who own HOS flats with paid land premiums have complete ownership and can freely sell and switch to mortgages, those with unpaid land premiums face more restrictions when switching.

 

When switching to a mortgage, HOS flat owners with unpaid land premiums can only transfer the remaining mortgage balance, but cannot increase the amount borrowed or extend the repayment period. Furthermore, HOS flat owners can only switch under specific circumstances, such as for medical expenses, funeral costs, and children's overseas education fees, and must obtain the Housing Department's approval. Approval for personal financial issues is not guaranteed, so it is important for HOS flat owners to understand these restrictions before making any decisions.

 

Switching to a mortgage also means losing the government's guarantee as a guarantor. This may make it more difficult to obtain mortgage approval, with the loan-to-value ratio capped at 60% of the property price, a repayment period of up to 25 years, and higher interest rates. Additionally, the loan amount may be limited if the owner fails the stress test or cannot provide a guarantor. Many HOS flat owners are retired and may not have income proof, further limiting their loan amount.

 

Despite these limitations, many HOS flat owners still choose to switch to mortgages due to financial difficulties or the need for cash flow. For example, some may need to pay for expensive medical treatments or their children's education fees, while others may need to reduce their monthly repayments due to financial stress. When selecting a mortgage product, HOS flat owners should consider their repayment capacity, loan tenure, interest rates, and other factors.

 

In conclusion, HOS flat owners with unpaid land premiums should carefully consider the restrictions and risks associated with switching to mortgages. It is crucial to evaluate personal financial situations, seek professional advice, and choose a mortgage product that is appropriate for their needs.

 

需要幫忙? 請馬上透過 WhatsApp 微信WeChat 聯絡我們

掃描二維碼即時聯絡我們!

WhatsApp:+852 5991 2927

Whatsapp QR code

微信WeChat:probityproperty

WeChat QR code

聯絡我們

地址:香港中環德輔道中59號中南行301室

電話:+852 5991 2927

電郵:[email protected]

本網站為一站式物業按揭資訊分享平台,本網站所分享之服務計劃內容及價錢,均由本網站向相關銀行及金融機構銷售員查詢及提供,僅供參考。本網站並不保證於網站內顯示的物業按揭資訊內容均完全準確。本網站內所顯示的物業按揭內容等資訊僅供參考,實際收費及優惠由銀行或金融機構或公司決定及以該銀行或金融機構或公司最新發放的資料為準。如你發現本網站分享的物業按揭資訊有錯誤,歡迎聯絡本網站更正。本網站內分享之圖片只用作表達相關推廣資訊。本網站內分享之文章內容僅供參考,本網站並不保證於網站內文章內容均完全準確。推廣資訊以查詢時間為準,銀行或金融機構保留最終決定權,謝謝。