BEA Launches 140% Mortgage Plan
for Negative Equity Homeowners
Hong Kong, 22 July 2002 ¡V The Bank of East Asia (¡§BEA¡¨) today announced its participation in the Home Owner Mortgage Enhancement Programme, introduced by the Hong Kong Mortgage Corporation. Under the programme, BEA will launch the ¡§140% Mortgage Plan for Homeowners in Negative Equity¡¨, offering to refinance existing mortgages with a loan as high as 140% of the current property value with a mortgage rate as low as 1.75% below the Prime rate. BEA will assist homeowners in negative equity to structure their re-payment schedule, to ease the financial burden that many in this situation now face. The attached table shows how borrowers can save on both monthly interest and repayment amounts.
Details of the ¡§140% mortgage plan for Homeowner in Negative Equity¡¨ are as follows: -
| 1. Loan amount | : | Up to 140% of the property value |
| 2. Mortgage Rate | : | Prime-1.75% p.a. to Prime-0.5% p.a. |
| (Current Prime rate: 5.125%) | ||
| 3. Loan Tenor | : | Up to 30 years |
| 4. Application Fee | : | HK$3,000 (refundable after drawdown of the loan) |
| 5. Annual Premium * | : | 1.25% to 0.44% (will be borne by BEA) |
| 6. Fire Insurance | : | Free for the 1st year, thereafter 30% discount per annum (only applicable to new mortgage loan customers and insurance policy effected via BEA) |
| 7. Credit Card | : | Full waiver of annual fee of BEA VISA Gold Card throughout the loan period |
| * Note: | An upfront premium ranging from 2% to 2.15% of the loan amount is payable to the Hong Kong Mortgage Corporation and will be borne by the borrowers. |
Further details of the above mortgage plan are available by calling BEA's Mortgage Hotline on 2868 5151 (press ¡§1¡¨) or by visiting any BEA branch.
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For further information, please contact:
Mr Kenneth Tsin
Senior Mortgage Distribution Manager
Property Loans Department, BEA
Tel: 3407 2133
Fax: 2845 5781