Property Market Buzz: "Transfer and Top-up" of Public Housing Loans

Understanding the application process and considerations for transferring and topping-up public housing loans

The relentless rise of property prices in Hong Kong has put immense pressure on those looking to purchase a home. Public housing has become a more affordable option, making it a preferred choice for many citizens. However, some families may need to cash out or top-up their loans due to financial reasons or other factors. Today, we will discuss the application process and considerations for transferring and topping-up public housing loans.

First, let's clarify what transferring and topping-up public housing loans entail. Transferring a public housing loan means moving the remaining loan balance from the Housing Authority to another bank with a lower interest rate to reduce payment pressure. Topping-up a public housing loan refers to increasing the loan amount to cash out or fulfill other housing purchase needs.

Before transferring or topping-up a public housing loan, an application must be submitted to the Housing Authority and a consent letter obtained. If only the remaining loan balance is transferred to another bank and payment pressure remains the same, the chances of approval are relatively high. However, if the application is for increasing the loan amount and cashing out additional funds, the process will be more complicated.

When applying for a cash-out or top-up, the following points should be noted:

• Applicants must provide reasonable reasons for cashing out or topping-up, such as to cover medical expenses, family education fees, funeral expenses, or to pay for the price of the property due to divorce or separation, among others.
• The total monthly income of the applicant's household must not be lower than the cash-out amount to ensure repayment capability.
• The cash-out amount must meet the actual needs of the case and not exceed the financial situation of the applicant.
• Except for exceptional circumstances, credit card debts, personal loans, and the like are generally not approved.

In addition, applicants must bear the costs of lawyers and Housing Authority application fees and should be aware of the interest rates and conditions offered by different banks for transferring or topping-up loans to select the most suitable plan.

The application process for transferring or topping-up public housing loans is relatively complicated. Applicants need to carefully read the relevant application documents, fill out the relevant information, and submit the necessary documents and proof of materials. The application process may require providing information such as income and financial proof, existing loan data, and the bank's credit rating for the applicant.

Overall, the application process for transferring or topping-up public housing loans is complex. Applicants need to carefully evaluate their financial situation and loan risks, follow the relevant application procedures and considerations, to obtain a successful application. At the same time, applicants can also consider seeking advice from professional financial advisors or the Housing Authority regarding borrowing matters to better understand their financial situation and loan risks and make the best decisions for themselves.

For those who are looking to purchase public housing, multiple sources of information and platforms can be used to understand the market situation and related housing information. Applicants should carefully evaluate their economic strength and housing needs to make the best choice.