Best ICBC Mortgage Plan in Hong Kong
ICBC currently has 57 retail outlets in Hong Kong (29 of which are “Elite Club” Centres), offering a wide range of services including business banking, investment banking, insurance and bonds.
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Mortgage Plans
Why you should consider this provider? Whether you are purchasing a new property or planning to refinance on your mortgaged property, ICBC will strive to customise the right mortgage package to meet your financial needs.
ICBC New Buy Mortgage Rate Plans
| New Buy Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| ICBC 1 Month HIBOR | H+1.4% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| ICBC Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
ICBC Refinance Mortgage Rate Plans
| Refinance Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| ICBC 1 Month HIBOR | H+1.5% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| ICBC Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
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ICBC Mortgage Plan: Advantages
No matter if you are purchasing a new property, be it private property or under HOS or planning to refinance on your mortgaged property, ICBC will strive to get you the right mortgage package that suits your needs the most. ICBC mortgage is characterised by the benefits outlined below:
- Enjoy preferential interest rates
- Enjoy credit card spending rebate
- Enjoy complimentary fire insurance for the first year
- Enjoy credit card annual fee waiver within repayment period
- Enjoy flexible repayment options between "Fixed Tenor" or "Fixed Repayment Amount".You can can also choose to pay bi-weekly to reduce interest expenses.
- Enjoy simple Application. To apply, you just have to bring the required documents to any ICBC branches.
ICBC 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 Public Bank (Hong Kong) mortgage plans such as mainland properties, public housing, etc.
Mortgage Term with ICBC
Property age, types of property and credit scores all affect BOC mortgage terms:
Property Valuation with ICBC
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.
ICBC 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 ICBC 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 Maximum Loan Period: 25 years |
| Tong Lau | Y | Less than 10 Million: 80-90% LTV, depending on mortgage amount 10 Million or above: 50% LTV |
| Home Ownership Scheme Housing | N | N/A |
| Public Housing | N | N/A |
Paying for ICBC 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 ICBC Home Loan
Apply for ICBC Mortgage via MoneySmart
Get in touch with our mortgage team
Applicants can contact our professional mortgage team though our website WhatsApp +852 9665 5218
Compare ICBC mortgage plans
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Apply online with required documents
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ICBC Mortgage Plans FAQ
What is building order? Does ICBC impose any restriction on the property with building order?
- ICBC 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 6-month of bank statement as income proof. Applicants can also apply through Asset Based Lending using properties, cash, stocks, bonds, etc but not a certain.
Why Get a 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.
