Best BEA Mortgage Plan in Hong Kong
BEA is a leading financial services group in Hong Kong and it is listed on The Stock Exchange of Hong Kong as well, serving the financial needs of customers. BEA also operates one of the largest branch networks in town, with 64 branches, 53 SupremeGold Centres, and 11 i-Financial Centres, which makes banking much easier.
Apply for BEA Mortgage via MoneySmart Now and earnup to 0.23% Cash Rebate!
Mortgage Plans
Why should you consider BEA Mortgage? BEA mortgage plans provide both Prime-based Mortgage Plan (P Plan) and HIBOR-based Mortgage Plan (H Plan). You can choose the plan that suits your financial needs the most.
BEA New Buy Rate Plan
| Rate Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| BEA 1 Month HIBOR | H+1.3% | P(5.25%) - 2.75% | All property types apart from public housing and HOS Scheme |
| BEA Prime Rate | P(5.25%) - 2.75% | 5.25% | Public Housing and HOS Scheme |
BEA Refinance Rate Plan
| Rate Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| BEA 1 Month HIBOR | H+1.35% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| BEA Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
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BEA Mortgage Plan: Advantages
BEA mortgage plans are characterized by its extended payment term and preferential mortgage rates, etc., which apply to both new mortgages, remortgages, etc.
90% Mortgage Plan
Up to 90% mortgage plan provided jointly by BEA and The Hong Kong Mortgage Corporation Limited to first-time buyers.
Prime-based Mortgage Plan (P Plan) or HIBOR-based Mortgage Plan (H Plan)
Both Prime-based Mortgage Plan (P Plan) and HIBOR-based Mortgage Plan (H Plan) with cap are available for clients to choose from.
Extended Payment Term
Loan tenor of up to 30 years, which is longer than what’s usually on offer in the market.
Preferential Mortgage Rate
Good rates and cash rebate with free valuation, which lowers your overall transaction costs.
BEA Mortgage Plan: Disadvantages
It’s important to note the points below before you apply for BEA mortgage:
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 BEA mortgage plans such as mainland properties, public housing, HOS and village houses.
Mortgage Term with BEA
Mortgage applications are affected by a number of factors:
Property Valuation with BEA
BEA does not have their own valuation department. Banks usually use the valuation service by a third party company like DTZ, CBRE, Savills, Centaline Property Agency, etc. to provide valuation services.
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 purchases but also refinance mortgages. Various 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). Certain property types such as 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 BEA mortgage?
| Property types | Y/N | Notes |
|---|---|---|
| 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: 85% LTV, depending on mortgage amount 10 Million or above: 50% LTV Maximum Loan Period: 25 years |
| Tong Lau | Y | Less than 10 Million: 85% 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 |
| Housing in Mainland China | N | - |
Paying for your BEA Mortgage
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$25,000 and his/ her monthly rental income (lease with stamping provided). His monthly income will be HK$25,000 + HK$10,000 X 70%, which is HK$32,000.
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 BEA Home Loan
Apply for BEA Mortgage with 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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BEA Mortgage Plans FAQ
What documents are required when applying for BEA mortgage?
- Mortgage applicants are required to submit proof of identity, recent 3-month salary record, bank statement and recent tax bill. For new purchase mortgage application, applicants are required to submit provisional agreement for sale and purchase. For refinance mortgage, recent repayment record, current mortgage repayment information and proof of residential address are required.
Does BEA provide mortgage for properties with building order?
- Bank of East Asia may provide mortgage for properties with building order. But it will be handled on a case by case basis.
Will mortgage application without a fixed income be accepted?
- Applicants without a fixed income can submit a mortgage application with the recent 6-month bank statement.
Can I apply for a mortgage without a tax bill?
- Applying for BEA without a tax bill is not likely to be accepted. Applicants may consider applying through Asset Based Lending (ABL) instead of in this case.
Why get a mortgage through MoneySmart?
- Apply through MoneySmart is easier and cheaper. You can get up to 2.5% special interest rate and up to 1.5% cash rebate. In just 9 working days, you can get multiple banks’ offers.
