Best Bank of Communications Mortgage Plan in Hong Kong
BoCom (HK) has an extensive network all over Hong Kong, offering both corporate and personal banking customers a one-stop corporate financial and wealth management services through its 44 branches. BoCom (HK) has been awarded a “stable” rating outlook by Fitch, Moody's and Standard & Poor's- the same international credit rating as BoCom.
Apply for Bank of Communications Mortgage via MoneySmart Now and earnup to 0.23% Cash Rebate!
Mortgage Plans
Bank of Communications (Hong Kong) Limited "BoCom (Hong Kong)" Mortgage Loan Service helps you realize your home-owning plans by offering mortgage services with preferential rates catering to your varying needs on home financing.
Bank of Communications New Buy Mortgage Rate Plans
| New Buy Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Bank of Communications 1 Month HIBOR | H+1.35% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| Bank of Communications Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
Bank of Communications Refinance Mortgage Rate Plans
| Refinance Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Bank of Communications 1 Month HIBOR | H+1.35% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| Bank of Communications Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
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Bank of Communications Mortgage Plan: Advantages
Bank of Communications Mortgage is characterized by below features:
- Higher Loan Amount & Longer Repayment Period Amount
Borrow up to 90% of the purchase price or appraised property value (whichever is lower), and enjoy up to 30 years of repayment period - Preferential Mortgage Interest Rates
Preferential mortgage interest rates are available for you to select - Flexible Repayment
Enjoy the flexibility to choose to repay within a fixed period or by a fixed installment amount. Monthly or bi-weekly repayment scheme available for you to achieve your financial objectives. - Application fee waiver and free verbal valuation service
- Credit Card annual fee waiver within the repayment period
- Special discounts on designated insurance products
Bank of Communications Mortgage Plan: Disadvantages
Penalty Period
Paying back some or all of your mortgage within the penalty period will incur early repayment charges. For details, you can check your facility letter.
Restrictions on Property Types
You may need to submit extra documentation for certain types of property and some are not even applicable to the mortgage plans such as mainland properties, public housing, etc.
Mortgage Term with Bank of Communications
Property age, types of property and credit scores all affect Bank of Communications mortgage terms.
Property Valuation with Bank of Communications
Most of the banks do not have their own valuation department. They usually use the valuation service by a third party company like DTZ, CBRE, Savills and Centaline Property Agency etc. to provide valuation services.
Bank of Communications Online Valuation Service
Online Valuation Service doesn’t cover all properties in Hong Kong and the valuation tends to be more reserved. MoneySmart suggests considering valuation from a number of banks or using MoneySmart Property Valuation Calculator.
Property valuation is an important part of the entire mortgage application process. It does not only affect new purchase but also refinance mortgage. Numerous specific factors relating to the building will be looked at for example house prices of recent sales in the area, sales transactions, age, quality, unauthorised building works and building orders (if any). Village houses, old buildings and single private residential buildings usually have a low number of sales transactions, resulting in a low mortgage valuation.
For properties with a lower than expected valuation, MoneySmart suggests:
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Can these properties get a Bank of Communications mortgage?
| Property Type | Y/N | Remarks |
|---|---|---|
| Off Plan Property | Y | Less than 6 Million: 80% LTV 6 -10 Million : 60% LTV or 5 Million (whichever is less) 10 Million or above: 50% LTV |
| First hand Property | Y | Less than 10 Million: 80-90% LTV, depending on mortgage amount 10 Million or above: 50% LTV |
| Second hand Private Housing | Y | Less than 10 Million: 80-90% LTV, depending on mortgage amount 10 Million or above: 50% LTV |
| Village Housing | Y | Less than 10 Million: 80-90% LTV, depending on mortgage amount 10 Million or above: 50% LTV |
| Tong Lau | Y | Less than 10 Million: 80-90% LTV, depending on mortgage amount 10 Million or above: 50% LTV |
| Home Ownership Scheme Housing | Y | Prime Rate Plans only. Land Premium unpaid: loan amount up to 90% of property price (white form) or 95% (green form) Land Premium paid: cases treated as 2nd hand private property Maximum loan period: 25 years |
| Public Housing | Y | Prime Rate Plans only. Loan amount: Up to 100% of property price (non inclusive of deposit paid to Housing Authority) Maximum loan period: 25 years |
Paying for Bank of Communications Mortgage
The repayment methods are similar among different banks but it's important to check the facility letter for early repayment terms. Usually, a penalty applies if you wish to repay the mortgage earlier.
Can I apply for a mortgage only by rental income?
Yes. But not all rental income will be counted as monthly regular income. Please see below for details:
Percentage of rental income calculated as monthly regular income.
Lease with stamping: 70%
Lease without stamping: 60%
For example: If the monthly income of the applicant is HK$20,000 and his/ her monthly rental income (lease with stamping provided). His monthly income will be HK$20,000 + HK$10,000 X 70%, which is HK$27,000.
Should you pay off your mortgage early?
Early mortgage repayment
There are two types of early mortgage repayment. The first one is to pay off the debt completely and the property will become yours. The second one is to pay back the capital to save on some interests. No matter which one you choose, you may be subject to early mortgage repayment fees. In recent years, some banks have shortened the penalty period to half a year or a year. If a borrower decides to repay the debt within the penalty period, a higher early mortgage repayment fees/ interest rates will be incurred. If it is beyond the penalty period, the fees will be a lot less. In the first year of the penalty period, the penalty is 1%+cash rebate and in the second year, the penalty is all cash rebate. MoneySmart suggests negotiating the best penalty period terms before accepting the mortgage plan.
How to apply for your Bank of Communications Home Loan
Apply for Bank of Communications Mortgage via MoneySmart
Get in touch with our mortgage team
Applicants can contact our professional mortgage team though our website WhatsApp +852 9665 5218
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Bank of Communications Mortgage Plans FAQ
What documents are required when applying for a Bank of Communications mortgage?
- To apply for Bank of Communications mortgage, proof of identity, provisional agreement for sale and purchase (applicable to new purchase)/ proof of residential address (applicable to refinance), salary record, and recent tax bill are required.
Does Bank of Communications accept mortgage applications on properties with a building order?
- Bank of Communications will provide mortgages for properties with warning orders, but not for properties with building orders.
Can I apply for a mortgage without a fixed income? Can I apply with my asset instead?
- If you do not have a fixed income, Bank of Communications accepts recent 6-month of bank statements as income proof. Applicants can also apply through Asset Based Lending.
Can I apply for a pre-approved mortgage?
- Bank of Communications does not accept mortgage application without a tax bill. Applicants can consider applying through Asset Based Lending (ABL) if he/ she has more assets.
Why Get a Bank of Communications Mortgage through MoneySmart?
- Best Mortgage Offers: Get SPECIAL interest rate offer from 2.5% and cash rebate up to 1.5%.
- Speed Up the Mortgage Application: Get multiple banks’ offers in 9 working days by filling our Fast Form at the comfort of your home.
