Wednesday, November 01, 2006

Property Purchase Update

Property Purchase Update

The bank finally approved the finance today. The terms are sightly better than originally offered:

Gearing:70% on purchase price

Term: 20 years

Interest Rate: HIBOR = 0.65% or Prime - 3% whichever is the lower

HIBOR: one month fixings

Cash back: 0.6% of loan

Early repayment penalty: 3%, 2%, 1%

Each time I have taken out a loan in Hong Kong, the terms seem to get better and better. Completion is next Friday. I have approved the budget and works for the refurbishment but am holding out until early next week in the hope of trying to negotiate slightly better pricing.

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