Real estate market
Written by: Xu Shihao
2020-02-06 18:48
Last updated: 2020-02-06 18:54BOC Hong Kong (2388) announced that in response to the impact of the new coronavirus-infected pneumonia epidemic, it has proposed five financial service support measures, including an arrangement that will provide property mortgage loans with “interest-bearing but not principal” arrangements. Star Valley Mortgage Chief Executive Officer Zhuang Jinhui said that related measures, including allowing residential and commercial mortgage loans to suspend the repayment of principals, can improve the financial flexibility of citizens or SMEs, and have a "leader" role. Other large banks are expected to follow suit. He pointed out that taking an average loan amount of 4 million as an example and using an interest rate of 2.25%, a total of about 32,000 Hong Kong dollars can be repaid over a 6-month period.
However, it is understood that this measure does not include the construction of mortgage insurance and mortgage customers who apply for the developer's second mortgage, and they need to have started to contribute for one year or more, which is more restrictive. He pointed out that high-margin mortgage buyers have the lowest financial strength, but need such relief measures most, and banks can consider supporting the mortgage customers.
In addition, he said that the "interest supply but not the principal" plan will also affect the redemption activity in the market, because applying for the plan after the penalty period has passed will cause the owner to fail to perform the redemption.
Lee Ka Court: Borrowing 3 million can save nearly half of expenses
Wong Wing-hing, Managing Director of Lijia Court Mortgage, believes that the measures will have a stabilizing effect on the market, help alleviate the financial pressure on mortgage buyers, ease the further impact of the Hong Kong property market and the overall economy, and play a preventive role.
She said that social events over the past six months, coupled with the recent epidemic situation, believed that it would have a great impact on Hong Kong ’s economy, property prices and the job market. Once there is a wave of layoffs, supply may be cut off. If the property becomes a silver master disk The launch of market auctions will also create a chain effect, which may further impact the already weak property market.
For example, if she still owes a bank loan of 3 million yuan, based on the current interest rate of 2.5%, she will "repay interest but not repay the principal" for 6 months, with a monthly payment of about 6,250 yuan, which is less than the monthly supply of 12,000 yuan, and less Expenditure in the thousands of yuan can effectively alleviate financial pressure on those who are unemployed or have short-term economic difficulties.
Wang Meifeng: Arrangement is a good thing
Wang Meifeng, Managing Director of Central Plains Mortgage, pointed out that if the bank can cooperate with the provision of diversified relief arrangements, it will be a good thing. The epidemic will greatly affect commercial, retail and consumer activities, especially the business plunge of many merchants. Periods can alleviate the pressure of repayment, especially by SMEs, and avoid the risk of sudden cuts in supply during this period.
BOC Hong Kong launches 5 measures to "anti-epidemic" financial measures, property loans can apply for "interest repayment but not principal repayment"
[Wuhan Pneumonia] Macau Monetary Authority Allows Property Mortgage to "Repay Interest but Not Principal" for Six Months
Standard Chartered promotes many benefits to support SME loan customers can apply for 6 months "interest repayment but not principal repayment"
Li Ka Court
