Comparing a 3.20% Hong Kong mortgage quote after fees

[XaviReed]

I want a mortgage that stays affordable even if refinancing is unavailable. The obstacle is comparing the real offer: on a Hong Kong purchase around HK$11,080,000, the quote is 3.20% fixed for 20 years, but the fees and loan-to-value band make it less attractive than the promoted rate suggested.

Should I compare the offers at a likely repayment date using payments, upfront charges and the remaining balance, or give more weight to APR? I am also checking portability and charges for paying off the loan early. The broker expects a later refinance, but I do not want the decision to depend on that.

 

[gardensAndCorner]

Getting the timing wrong could cost more than the small difference between two quoted rates. APR is tempting because it gives one comparison figure, but it may not reflect when you actually sell or refinance.

I would choose a plausible exit date and, for each offer, add the payments made, arrangement charges and any fee for settling then, while also comparing the balance still owed. Repeat the calculation for an earlier date if your plans are uncertain. That gives you a practical comparison without pretending the mortgage will definitely run for all 20 years.

 

[romy_stone]

What loan amount and loan-to-value tier does the 3.20% quote assume? The HK$11,080,000 purchase price alone is not enough to compare payments. I would ask each lender for the monthly payment, all upfront fees, the outstanding balance after several plausible holding periods, and the cost of repaying at those dates. That puts every quote on the same assumptions.

 

[knitsAndLane]

The payment at 3.20% may already be affordable, but it is still unclear how much the quote relies on a favourable exit. Put the lender figures into three columns: keep the loan for 20 years, repay or refinance early, and carry on because no better deal appears.

For example, if an early repayment charge wipes out the benefit of refinancing after a few years, portability will not rescue the calculation. Choose the mortgage only if the payment and fees remain acceptable in the less convenient cases, not just the broker’s preferred one.