HK's mortgage lenders doing booming business in the shadows
This comes as traditional financing dries up and property prices surge to record highs
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."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say