What documents are required when applying for a Hang Seng Bank mortgage?

To apply for a Hang Seng Bank mortgage, proof of identity, provisional agreement for sale and purchase (applicable to new purchase)/ recent 3-month repayment record, current mortgage repayment information, proof of residential address (applicable to refinance), recent 3-month salary record, bank statement and recent tax bill are required.

What is building order? Does Hang Seng Bank impose any restriction on the property with building order?

When a property is found to have unauthorized building works by the Housing Department, a building order will be issued, which demands the property owner to get it removed in a given time frame. Hang Seng Bank will not provide mortgages for properties with building order.

Can I apply for a mortgage without a fixed income? Can I apply with my asset instead?

In general, self-employed applicants are required to provide a 6-month bank statement as income proof. Applicants can also apply through Asset Based Lending using properties, cash, stocks, bonds, etc but not a certain percentage of the total assets will be calculated.

Can I apply for a mortgage without a tax bill?

Hang Seng Bank does not accept mortgage applications without a tax bill. Applicants can consider applying through Asset Based Lending (ABL) if he/ she has more assets.

Can I apply for a pre-approved mortgage?

If you are worried about increasing interest rate or increasing capped interest rate, property owners may consider applying for a pre-approved mortgage, but many banks including Hang Seng Bank do not accept pre-approved mortgage.

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Mortgage Plans

Hang Seng offers both H plan and P Plan. The current rate of P Plan is P-2.5%. P is now 5% so the actual interest rate is 2.5%. H Plan is now at H+1.3% with P-2.5% cap. Hang Seng also offers 1-1.2% cash rebate.

Hang Seng Bank New Buy Rate Plan

New Buy Mortgage Plan	Rate	Interest Rate Cap	Applicable Property Types
Hang Seng Bank 1 Month HIBOR	H+1.3%	P(5.0%)-2.5%	All property types apart from public housing and HOS Scheme
Hang Seng Bank Prime Rate	P(5.0%)-2.5%	5.0%	Public Housing and HOS Scheme

Hang Seng Bank Refinance Rate Plan

Refinance Mortgage Plan	Rate	Interest Rate Cap	Applicable Property Types
Hang Seng Bank 1 Month HIBOR	H+1.4%	P(5.0%)-2.5%	All property types apart from public housing and HOS Scheme
Hang Seng Bank Prime Rate	P(5.0%)-2.5%	5.0%	Public Housing and HOS Scheme

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Hang Seng Mortgage Plan: Advantages

Cash rebate is one of the most important factors when it comes to deciding which mortgage plan to go for. The one that Hang Seng offers is 1-1.2%, which is not particularly high compared to what's on offer in the market. Moreover, you can also enjoy some discounts on designated home insurance.

Also, Hang Seng also offers online valuation service and mortgage calculator. These info could help you negotiate a better valuation.

Hang Seng Mortgage Plan: Disadvantages

Like many other banks, the penalty period applies in Hang Seng mortgages. The current penalty period of Hang Seng mortgages is 3 years. That is to say, if you repay all of your mortgage within the penalty period, the penalty will apply and you also need to return the cash rebate.

Also, Hang Seng has its own valuation team so it could be difficult to negotiate in case of undervaluation.

Mortgage Term with Hang Seng Bank

Property age, types of property and credit scores all play a part in Hang Seng mortgage terms.

Mortgage applications are affected by a number of factors:

Hang Seng will consider the age of your property when reviewing your mortgage applications. Hang Seng adopts the ‘75-property age’ when working out the maximum mortgage term for your mortgage. For example, if you would like to apply for a Hang Seng mortgage for a property aged 50 years, the maximum term is 75-50= 25.

Hang Seng will also consider the types of property you are applying for your mortgage application. For example, if you apply for a mortgage for a village house, the application can be more complicated as it usually takes longer for due diligence on the title, permitted uses, legality of construction, etc.

Your credit score also affect the final interact rate, mortgage term and loan amount of your mortgage application.

Property Valuation with Hang Seng 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, CBRE, Savills, and Centaline Property Agency etc. to provide valuation services. Hang Seng Bank only accepts valuation service from Debenham Thouard Zadelhoff (DTZ), therefore their valuation tends to be reserved.

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:

1

Requesting banker to get valuations from few more companies. However they may refuse your request. Alternatively, you can apply through MoneySmart. We work with all major mortgage lenders. We can help you to compare, choose and apply for the best mortgage with a higher valuation.

2

For refinance mortgage, you can directly commission a company for property valuation and submit the valuation report to the bank directly. This approach suits under valuated properties like village houses and old buildings. It may double the valuation price. However, not all banks accept reports like this. It is best to check in advance.

Can these properties get a Hang Seng Bank mortgage?

Property Type	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
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

Paying for Hang Seng Mortgage

The repayment methods are similar among different banks but it's important to check the facility letter for early repayment terms. Usually, penalty applies if you wish to repay the mortgage earlier. So it's worth checking before you decide to repay your Hang Seng Mortgage Loan debt within the penalty period.

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 Hang Seng Home Loan

Step 1

Get in touch with our mortgage team

Applicants can contact our professional mortgage team though our website WhatsApp +852 9665 5218

Step 2

Compare Hang Seng mortgage plans

MoneySmart will follow up on your enquiry and provide you with different mortgage plans to choose from

Step 3

Apply online with required documents

Fill in a consolidated application form with MoneySmart to apply for a mortgage with different banks. 👍🏻

Step 4

Check the application form and sign it

The bank that you have applied for will contact you directly 📞to collect the necessary documents. Applicants can get in touch with the mortgage department directly for future inquiries.

Step 5

Draw down your mortgage

We will remind ⏰ you upon successful application and provide you with suggestions and assistance you may need until you have successfully got the mortgage.

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