I. Obtaining a mortgage

If you need a real estate loan, you should contact a few banks in Hong Kong to see if they can help. Applicants can contact some banks in person to confirm the possibility of obtaining a local real estate loan as a non-resident alien. You can also appoint a professional.

Generally, foreigners have no problem obtaining a loan from a local bank. Banks are not too concerned about your nationality or residency status. However, what the bank really cares about is:

1. the type of property you intend to buy.

2. Your investment objectives.

3. Your source of income (preferably in Hong Kong) and other factors.

Considering the high cost of buying real estate in Hong Kong, many people would be surprised to apply for a real estate loan as a non-resident foreigner.

By Asian standards, the mortgage market is highly developed, with mortgages accounting for 25% to 30% of all bank loans. Details are subject to local bank announcements.

The Hong Kong real estate market is known for its transparent and efficient ownership record system.

Some of the main documents that foreigners need to bring with them when applying for a property loan are: the borrower's (and guarantor's) Hong Kong ID card or passport, a provisional sale and purchase agreement (for new purchases), the last three months' salary records (bank statements), the last three months' tax returns and employment letters, the last three months' repayment schedule or mortgage repayment records (for remortgages), and other relevant supporting documents.

ii. Appoint a real estate agent in Hong Kong

Once you get your financing and loan pre-approval, it's time to find a real estate agent. Once you find an agent, you'll want to make sure the agent has a good track record and is fluent in English, Cantonese or Mandarin, depending on your needs.

Finding a real estate agent online is now the most common practice so you can get professional help.

iii. Get a property lawyer

Hire a property attorney to help you draft documents and other legal work. Agreements and contracts are usually written in legal form. So you can reduce the risk of encountering pitfalls later. The appointed lawyer can help the applicant to check the title deeds, confirm whether the property has any mortgage or title encumbrance, help you to communicate with the seller, etc.

Remember, when the property is transferred into your name, the real estate attorney will help you complete the transfer process. It may cost you more in the short run, but in the long run, appointing a professional lawyer can save you a lot of money.

IV. Check the deed

It is important to give a comprehensive overview of the title to ensure that there are no hidden encumbrances or liens on the property.

Some examples are mortgages or restrictions on the use of the property. Applicants can search the online land registry for titles, but should check titles with the help of your real estate agent and attorney.

V. Payment of the deposit, provisional agreement

Once you have found the property you want, checked the title, and agreed on a price with the seller, it is time to make a down payment. The first deposit is called the "initial deposit" and is usually 5% of the purchase price.

You should pay the deposit when you submit the Provisional Agreement (PA). If you are a Singaporean, you will find the process similar to a buyer paying 1% upfront for what is called a purchase option.

Keep in mind that the Provisional Agreement should include all the necessary information about what will happen if you back out of the deal. You may lose your deposit and pay extra money to compensate the seller.

If the seller breaks the agreement, he or she may have to pay you an amount equal to one or two deposits as compensation. The Interim Agreement contains the following information:

1. your name and Hong Kong identity card number (or passport number).

2. the seller's name and Hong Kong identity card number (or passport number).

3. the purchase price.

4. information relating to the installment payment.

5. a clear description of the property.

6. legal fees and duties.

7. information on title encumbrances and liens.

You can visit the EAA's website to see a complete list of all items that should be included in the PA.

VI. Formal Purchase and Sale Agreement

The above-mentioned tentative agreement, as the name implies, is just a simplified initial contract.

After the deposit is paid, at this stage, your real estate attorney and broker will help you make a formal purchase and sale agreement. This agreement should be reviewed and signed by both you and the seller.

VI. Signing the final mortgage agreement

Before finalizing the payments on your property, you will need to confirm the final mortgage amount you can borrow from the bank. Usually, your attorney or agent will contact your bank to ensure that the funds are transferred from your account to the seller's account.