[Mortgage Hotline] How to calculate the mortgage tax of connected units?

28Hse Editor  2021-11-12  #Transaction

Cao Deming, Chief Vice President of Meridian Mortgage Referral

There are many factors to consider when buying a home, and the type of house is one of the important considerations. Bus passengers or investors generally prefer to choose open-plan or one-bedroom units, while family guests or change guests mostly choose two-bedroom units or more. In order to cater to different buyers, developers will launch a variety of apartment types to cater to different customer groups. In addition to the above-mentioned units, some real estates also have characteristic units such as bungalows and connected units. In this episode, the author will talk to you about the precautions of connected units.

Self-made connection needs to be applied for

Connected units refer to two connected units, which are also divided into "original connected" or "self-made connected". The connected units sold by the developer are the most common such as duplex units. When the property is rare and expensive, the price is generally higher than that of two units sold separately. The developer's "original link" has applied to the Buildings Department for a linked house. When the buyer purchases the unit, only one property deed is involved. When applying for a mortgage, it is no different from a normal unit.

However, there are also people on the market selling "home-made connected" units, which means that the seller connects two independent units. Similarly, the selling price of self-made connected units is generally higher than that of two units sold separately. Before considering the purchase of "Homemade Link", you should confirm whether the unit has completed the application to the Buildings Department or the Land and Soil Department. If there is a violation or the contract is not clear, it may affect the mortgage approval, future resale and even related laws Problems etc.

Multiple mortgages will affect spending

Since the "home-made connected" unit was originally two independent units, the unit has two property deeds, and the mortgage and taxation are also quite different from the "original connected" unit. To give an example, Mr. A bought a "self-made connected" unit involving two deeds of property, and the bank estimates it to be 4 million yuan each. If Mr. A purchases the unit with a document, the ad valorem stamp duty shall be based on the first standard rate Calculated, that is, 4 million yuan × 2 × 15% = 1.2 million yuan. In terms of mortgage ratio, as the bank will treat it as multiple mortgages, both units can only take up to 50% of the mortgage.

It can be seen from examples that the purchase of "home-made linked" units may involve multiple mortgages and stamp duty issues, and the down payment and tax expenses may be quite different from those of "original linked" units. Before purchasing a connected unit, it is advisable to do a good job of data collection and calculations. You can also find a professional mortgage intermediary company for free inquiries.

Disclaimer: All wordings and pictures which indicated 28HSE editor are the copyright of 28HSE LIMITED. Acknowledgement is required if other parts of this publication are used. The content is for reference only, does not constitute investment advice and it does not mean that 28HSE agreed the points. The area which show in the article is salable area if there is no special circumstances. The pictures is for reference also.

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