"2023 Ultimate Guide to HOS Mortgages: Everything You Need to Know in One Place"

For those who have been successful in securing an HOS flat in 2023, it's crucial to understand the different types of mortgages available to you. Before signing any sale and purchase agreements, make sure you meet the eligibility requirements for the mortgage you want. Whether you're a Green Form or White Form applicant, we've put together a guide to help you navigate the different mortgage options for both first-hand and second-hand HOS flats, including loan-to-value ratios, repayment periods, stress tests, collateral periods, and refinancing options.

Loan-to-Value Ratios
The loan-to-value ratio is the amount of your mortgage loan compared to the value of your property. For first-hand HOS flats, the loan-to-value ratio is capped at 85%, while for second-hand flats, it ranges from 60% to 80%. However, if you already own other properties, the loan-to-value ratio may be adjusted accordingly.

Repayment Periods
The repayment period is the length of time you have to repay your loan. For first-hand HOS flats, the longest repayment period is 30 years, while for second-hand flats, it's 25 years. If you're over 60 years old, you may be required to repay your loan before reaching 60.

Stress Tests
Stress tests are used to evaluate your ability to repay your loan in the event of unexpected circumstances. When you apply for a mortgage, the bank calculates your ability to make payments based on the current interest rate and then performs a stress test to ensure you can still make payments even under adverse conditions. If you're unable to make payments in the event of unforeseen circumstances, you may need to provide additional collateral, such as paying more mortgage insurance.

Collateral Periods
The collateral period is the length of time during which you must provide collateral for your mortgage. You must provide your property as collateral during the mortgage repayment period. For first-hand HOS flats, the collateral period is 30 years, while for second-hand flats, it's 25 years.

Refinancing Options
After your mortgage contract expires, you have the option to refinance or add on to your mortgage. Refinancing allows you to change your repayment plan to a lower interest rate or a longer repayment period. Adding on to your mortgage allows you to borrow more money to purchase other properties or renovate your existing one. However, please note that there may be additional fees, such as administrative fees and appraisal fees, associated with refinancing or adding on to your mortgage.

In conclusion, we hope that this guide has provided you with a deeper understanding of HOS mortgages. Before signing any sale and purchase agreements, ensure that you meet the mortgage eligibility requirements and carefully read the contract terms. If you have any questions, be sure to contact the bank or the property developer. Finally, remember that a mortgage is a long-term commitment, so be sure to consider your financial situation and repayment ability to avoid any future difficulties.