Best Standard Chartered Bank Mortgage Plan in Hong Kong
Standard Chartered Hong Kong is one of the three commercial banks in Hong Kong to issue banknotes. Apart from its diversified personal and commercial banking services, it also sponsors the Hong Kong Marathon, which is an annual marathon race held in January or February in Hong Kong since 1997.
Apply for Standard Chartered Bank Mortgage via MoneySmart Now and earnup to 0.23% Cash Rebate!
Standard Chartered Bank Mortgage Plans
Standard Chartered Bank offers a comprehensive mortgage plan which allows you to borrow up to 90% property value. It is also characterised by its deposit linked account for you to enjoy the same interest rate as your mortgage loan. You can also enjoy up to 80,000 Asia Miles with HK$4,000,000 mortgage loan drawdown.
Standard Chartered Bank New Buy Rate Plan
| Rate Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Standard Chartered Bank 1 Month HIBOR | H+1.35% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| Standard Chartered Bank Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
Standard Chartered Bank Refinance Rate Plan
| Rate Plan | Plan Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Standard Chartered Bank 1 Month HIBOR | H+1.35% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| Bank Of China Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
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Standard Chartered Bank Mortgage Plan: Advantages
When it comes to rebate, you can choose between cash rebate or Asia Miles with a SCB mortgage. Asia Miles will be awarded for every HKD100,000 of eligible loan amount, which is great for frequent travellers. Moreover, with a MortgageOne® account, you can use your deposits to help reduce up to 50% of your mortgage interest expenses.
Standard Chartered Bank Mortgage Plan: Disadvantages
Certain types of property are not applicable to SCB mortgage plans such as public housing, HOS and village houses. Moreover, to open the MortgageOne® account, you need to pay for the arrangement fee and annual maintenance fee which are HK$2,000 and HK$500 respectively.
Mortgage Term with Standard Chartered Bank
Property age, types of property and credit scores all affect your SCB mortgage applications.
Mortgage applications are affected by a number of factors:
Property Valuation with Standard Chartered 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, Centaline Property Agency etc. to provide valuation services. HSBC 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:
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Can these properties get a Standard Chartered 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 | N | - |
| Tong Lau | N | - |
| 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 | N | - |
Paying for Standard Chartered Bank Mortgage
The repayment methods are similar among different banks but it's important to check the facility letter for early repayment terms. Usually, an early repayment charge 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 Standard Chartered Home Loan
Apply for Standard Chartered Bank Mortgage via MoneySmart
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Applicants can contact our professional mortgage team though our website WhatsApp +852 9665 5218
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Standard Chartered Bank Mortgage Plans FAQ
What documents are required when applying for SCB mortgage?
- For all mortgage applications, you are required to provide proof of identity, income proof and proof of residential address. For new purchase, provisional agreement for sale and purchase is required and for refinance, recent repayment record and current mortgage repayment information is required.
Can I apply for a mortgage without a fixed income?
- As long as you are able to provide bank statements for the past six months, it is possible to apply for a mortgage even without a fixed income.
Can I apply for a mortgage if I am unable to provide the tax bill?
- If you are unable to submit the tax bill, it is not likely that your mortgage application will be approved. However, you can try applying based on Asset Based Lending (ABL).
Why Get a Mortgage through MoneySmart?
- Applying through MoneySmart can save you time and money. You can get offers from multiple banks in just 9 working days and enjoy up to 2.5% special interest rate and up to 1.5% cash rebate.
