HK's mortgage lenders doing booming business in the shadows

Hong Kong

WHEN Horan Fu decided to buy a 500 square foot apartment for HK$7.4 million (S$1.3 million) last year, the biggest draw was the developer's offer of 85 per cent financing with an option to defer interest payments for the first three years.

"The interest rate could be a lot higher after three years, but there's also a chance that the interest would still be cheap because finance companies are competing fiercely," said Mr Fu, who works in the financial services industry. "There's risk but there's also an upside. It's a good investment opportunity."