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HOS Flat Loans: Remortgage vs. Homeowner Loan
🎧 Listen to this article
For subsidized sale flats without premium paid: If the owner wishes to use the unit as collateral for a loan rather than selling it, they must first obtain the Housing Authority/Housing Department Director's approved 'Remortgage' consent letter.
✔ Features
- It is a formal mortgage-type loan, disbursed by banks.
- All registered owners must jointly agree to apply.
- The Housing Department only accepts specific, demonstrable financial needs (such as medical expenses, education costs, family emergencies, etc.); investments, car purchases, credit card debt repayment, etc., are generally not approved.
- The approval process is longer, typically taking about 4–8 weeks.
✔ How Much Can I Borrow?
The maximum loan amount cannot exceed:
Assessed Selling Price × 80% − Outstanding First Mortgage Loan Amount
Example:
- Housing Authority Director's assessed selling price on that day: HK$900,000
- Outstanding first mortgage: HK$400,000
Calculation:
900,000 × 80% − 400,000 = HK$320,000
Method Two: Finance Company "Homeowner Loan"
This is not a mortgage, but an unsecured personal loan provided by a finance company to "homeowners". Because you are a homeowner with a higher repayment ability, the loan amount is usually higher than that of a typical personal loan.
✔ Features
- No Housing Authority approval required.
- Fastest approval possible on the same day.
- No restrictions on usage.
- Approval primarily based on "income + credit history".
- Common loan amount is 6–12 months of monthly salary.
✔ Risks
- Higher interest rates than banks.
- Short repayment periods.
- Must pay attention to the total repayment amount (some institutions may use "low-interest packaging" but have higher total costs).
🟦 Common FAQ
Q1｜Can I get a second mortgage from a bank for an HOS flat without premium paid?
No, you cannot. HOS flats without premium paid are subsidized housing, and the ownership is restricted under the Housing Ordinance. Banks will not treat them as ordinary private properties for a second mortgage.
Q2｜Is a finance company's "homeowner loan" considered a "remortgage"?
Strictly speaking, no. A "homeowner loan" is an unsecured loan. It's just because you own a property that the finance company considers your repayment ability to be higher, so they approve a larger amount. Your Home Ownership Scheme (HOS) flat is not mortgaged again, the status of the property deed remains unchanged, and legally it is not considered a "mortgage".
Q3｜Do I need to pay the land premium before I can apply for a second mortgage or refinance?
Yes. After paying the land premium, the unit will follow the "private housing mortgage rules" and will no longer fall under the "subsidized housing re-mortgage" category.