Best Chong Hing Bank Mortgage Plan in Hong Kong
Founded in HK in 1948, Chong Hing Bank Limited has been offering comprehensive commercial banking and financial services to customers. Chong Hing Bank has been listed on the main board of the Stock Exchange of Hong Kong (Stock code: 01111) since 1994. The Bank currently operates a network of 30+ branches in Hong Kong, providing services including HKD and foreign currency deposits, credit, foreign exchange, wealth management, etc.
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Mortgage Plans
Chong Hing Bank Mortgage offers a wide range of mortgage plans, including Residential Home Mortgage Loan Package, Sandwich Class Housing Scheme, Flat-For-Sale Scheme and Home-for-Home Loan for your varying needs.
Chong Hing Bank New Buy Mortgage Rate Plans
| New Buy Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Chong Hing Bank 1 Month HIBOR | H+1.5% | P(5.25%)-2.6% | All property types apart from public housing and HOS Scheme |
| Chong Hing Bank Prime Rate | P(5.25%)-2.6% | 5.25% | Public Housing and HOS Scheme |
Chong Hing Bank Refinance Prime Rate Plans
| Refinance Plan | Rate | Best Lending Rate (=P) | Applicable Property Types |
|---|---|---|---|
| Chong Hing Bank 1 Month HIBOR | H+1.5% | P(5.25%)-2.6% | All property types apart from public housing and HOS Scheme |
| Chong Hing Bank Prime Rate | P(5.25%)-2.6% | 5.25% | Public Housing and HOS Scheme |
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Chong Hing Bank Mortgage Plan: Advantages
Chong Hing Bank Mortgage offers HIBOR Mortgage Plan and Prime-based Mortgage Plan. Applicants can borrow up to 60% of property value and earn competitive cash rebate, Moreover, the repayment term can be up to 30 years. Applicants can also enjoy a waiver of fire insurance premium for the second year, plus 30% discount to fire insurance and 20% discount to household insurance for the entire loan period.
Chong Hing Bank 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.
When the business of a smaller bank is at risk, the possibility of revoking the loan is higher than that of a large bank. Back in 2008, during the financial crisis , small banks once tightened their mortgages and revoked loans directly.
Mortgage Term with Chong Hing Bank
Property Valuation with Chong Hing Bank
Most of the banks do not have their own valuation department. They usually use the valuation service by a third party company like DTZ, Savills and Centaline Property Agency etc. to provide valuation services.
Chong Hing Bank Mortgage 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 Chong Hing Bank?
| 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 Chong Hing Bank 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 Chong Hing Bank Home Loan
Apply for Chong Hing Bank Mortgage via MoneySmart
Compare Chong Hing Bank mortgage plans
Applicants can contact our professional mortgage team though our website WhatsApp +852 9665 5218
Compare Chong Hing Bank mortgage plans
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Chong Hing Bank Mortgage Plans FAQ
Does Chong Hing Bank impose any restriction on the property with building order?
- Chong Hing Bank does not accept mortgage applications for properties with building order.
Can I apply for a mortgage if I am not on a fixed income? Can I apply with my asset instead?
- Applicants can provide a 6-month of bank statement instead as income proof. Applicants can also apply through Asset Based Lending.
Why Get a Chong Hing Bank 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.
