I'm looking for a bank that can offer me a mortgage for a flat overseas, Hong Kong, that one of my relative is trying to sell.

Issue is I have no ideas on how to do that.

My questions are the following:

  • Should I find the mortgage in my country of residence e.g. France or rather in the country where the flat is?
  • What paperwork is needed?
  • Any other advice that might help me?

I've been doing my due diligence over the interweb but I found nothing of relevance so far.

  • 1
    You need to get a mortgage from a bank in Hong Kong. Banks in other countries will not be able to do it because they are not familiar with HK laws. – gaefan Apr 26 '17 at 12:39
  • hi @JeffO'Neill how to do that when you are not a permanent resident in HK e.g I do not have a payslip there – Andy K Apr 26 '17 at 12:40
  • I don't know, but I would get a recommendation from your relative for a HK bank and contact them to find out what they need. I suspect the bank will be willing to verify your French income for a mortgage. – gaefan Apr 26 '17 at 12:45
  • @JeffO'Neill what do you mean by recommandation...? Like she will be my guarantee? – Andy K Apr 26 '17 at 12:52
  • No, just a suggestion of a bank that she thinks provides good services. – gaefan Apr 26 '17 at 13:58

For individuals this would be difficult; more because the ticket size is small and the risks are not quantified / not fully understood. Most Banks may not want to offer such products. This is more easy for High Net work individuals or large corporations.

For a Bank in Hong Kong, they don't know you and there is a risk of default; foreclosing the house generally is a long drawn process complicated by the fact that you are not resident and some laws may not be applicable to you or evidencing the fact that they did the due diligence to contact you.

For a Bank in France, as the property is outside, they will have to spend quite a bit for valuations to see you are not taking a large loan for something else. Plus the risk if you don't pay; foreclosing a property in other country is quite tedious legal processes.

Another option would be if you have a fully paid house in France, you can try and take a loan against this property in France. Use this funds to buy the house in Hong Kong.

  • Hi @dheer, cheers for your answer. – Andy K Apr 27 '17 at 7:15

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