WHEELOCK Properties has introduced an innovative top-up mortgage facility to promote the sale of its Parc Regal development in Ho Man Tin Hill Road.
The company said yesterday it had joined several banks, including Hongkong Bank and Hang Seng Bank, to provide a combined 90 per cent mortgage finance.
This is the first time the developer has offered second mortgages for buyers of its residential projects.
Managing director Ray Tse Chee-on said its 20 per cent second mortgage scheme was 'unique' in the market because borrowers did not need to make a repayment of the principal loan in the first five years.
He said the payment of loan interest would be deferred until the fourth year, he said.
'In other words, there is virtually no cash outlay for the 20 per cent loan in the first three years and cash requirement in the fourth and fifth years will be manageable, as they [borrowers] only have to cover the interest,' he said.
Mr Tse said most second mortgage schemes by other developers required borrowers to start paying the loan and interest immediately, which made the monthly payment so high that many people could not afford it.
