[#新手教]What is the stress test? How to calculate? | Hong Kong 香港



In order to avoid excessive borrowing by the public, leading to an economic crisis in the financial system of the property market, the Hong Kong Monetary Authority requires banks to conduct stress tests for mortgage applicants. What exactly is a stress test? How will it affect the mortgage burden? Let’s step-by-step to understand the scare! 00:26 How is the stress test calculated? When a bank approves a mortgage, the biggest consideration is the income level of the mortgage applicant, because it is related to whether the loan will be bad. According to the guidelines of the HKMA, the mortgage applicant’s contribution-to-income ratio (DSR: Debt-Servicing Ratio) must meet two requirements. First: Contributions must not exceed half of the income. Second: Assume that after interest rates rise by 3%, DSR cannot exceed 60%. Take first-time home buyers as an example, their contribution to income ratio is required to be 50%. That is, assuming that the applicant’s monthly income is $20,000, the monthly mortgage payment accounts for up to half of the income, which is $10,000. But passing the first checkpoint has not yet been counted as passing, and you have to pass the stress test. If the monthly repayment amount is $10,000, the loan amount is approximately equal to 2.62 million yuan, the annual interest rate is 2.25%, and the repayment period is 30 years. Under the stress test, the annual interest rate will be assumed to be 5.25%, by which time the monthly repayment amount will increase to approximately $14,500. To understand your maximum contribution-to-income ratio, you must first ask yourself a few questions: “Is the property used for self-occupation?” “Is the income from Hong Kong?” and “Are there any loans or guarantees for other mortgage properties?” Under the framework that DSR cannot exceed 60%, the monthly income requirement becomes at least $24,200 instead of the original $20,000. At the same time, it should be noted that when the bank calculates the contribution-to-income ratio, if the mortgage applicant itself has some private foreign debt or credit card loans, this amount must also be included in the calculation. Do not “miss the amount”. 02:14 If the mortgage calculator thinks the above calculations are a bit complicated, you may wish to use the new feature “Midland Bamboo App” to help. The “Midland Development App” has a built-in “Mortgage Calculator”, which updates mortgage information daily, including HIBOR and P interest rates, rebate ratios, etc., to help you keep abreast of the latest mortgage market, and get a clear view of home ownership expenses. If you want to know what price you can afford in your budget, the “Affordability Calculator” will help you calculate it clearly in real time. For example, if you enter a property price of 6 million yuan, a mortgage of 60%, a loan of 3.6 million yuan, an annual interest rate of 2.255, and a repayment period of 30 years, it will show that the monthly payment is about $13,760, and the monthly income requirement under the stress test is about $33,130. 02:46 Is it good to have the pressure test point before? Under the current new mortgage insurance, if applicants fail the stress test, they can still apply for an 80% or 90% mortgage, but they need to pay additional mortgage insurance premiums, depending on the internal guidelines of individual banks. If it still fails, the applicant may find relatives and friends to pledge or act as a guarantor, or lower the property price budget before buying the property, and do not buy more than one can afford. Last but not least, in addition to preparing for the down payment, other expenses such as stamp duty, attorney’s fee contract, housing or mortgage deed, agency commission, etc. must be reserved for buying a property, so please remember to plan carefully before getting on the bus! 📌 If you have any questions about the property market or mortgage, please leave a message below or inquire with our online customer service: 👉 HongKongFloorPlans “#美联Confidence Index”: 👉Download the new upgraded version#美联17 search criteria 🔍 newly added #Map搵楼# MTR step search 🚇搵楼 in one step! #Real Estate Competition⚖️ to help you choose a Fit plate! #首创代理带睇楼, Internet celebrity agent self-portraits 📹 Login and enjoy# Personalized information and seamless cross-platform experience! ⚡ ▄▄▄▄▄▄▄⭐️ Featured videos⭐️ ▄▄▄▄▄▄▄▄ 📺【#新手教】Silver master plate enters the market 5 big tips📺【#新手教】Buy “No Deed House”, “Broken Deeds” Notice for the building” 📺[#新手教]Mortgage Term Dictionary (Part 1) 📺[#新手教]Should I pay attention to the terms of signing a lease? 📺[#新手教]See all purchase expenses other than the first phase in one go! Now on ” HongKongFloorPlans”: Subscribe to ” HongKongFloorPlans” YouTube channel: Like ” HongKongFloorPlans” Facebook page: Follow ” HongKongFloorPlans” Instagram: Follow public account: meilian_hk ( HongKongFloorPlans Hong Kong).

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