The Bank of East Asia

Personal Banking

Cross-Boundary Mortgage Loan

 

KV of Cross boundary Mortgage Loan

Key Facts Statement/Schedule of Fees and Charges

 

Product Features

  • Cover properties located in Shenzhen, Guangzhou, Foshan and Zhuhai
  • Applicable to completion of purchase in the primary market1 (legal mortgage and equitable mortgage) and cash-out refinance2
  • Loan amount in HKD can be up to 50% of the property value (subject to a maximum loan amount of HK$10 millions)
  • Maximum loan tenor of 20 years
  • Preferential mortgage rate
  • Mortgage documents handled by the Bank’s designated Hong Kong and Mainland law firms
  • Property insurance free for first-year  (underwritten by Asia-Pacific Property & Casualty Insurance Co., Ltd)

 

Eligibility

  • Hong Kong residents with Hong Kong Identity Card and Mainland Travel Permit for Hong Kong and Macau Residents

 

Required Documents

  • Proof of income (last 3 months’ salary deposit records, latest Tax Demand Note or employment contract)
  • Proof of address (last 3 months’ bank statement or water/electricity bill)
  • Property Sales Contract and Down Payment Invoice (first-hand residential properties)
  • Premises Permit (cash-out refinance)
  • Proof of marital status (Marriage certificate / Certificate of absence of marriage record / Letter of marriage record)

 

 Application Flow

 Crossboundary_Appflow

 

Service Fees and Charges

Solicitors Fee3 

  • Around HK$ 42,000 per case for any existing residential property mortgage transaction(s) or the refinance of existing residential property mortgage transaction(s)
  • Around HK$ 54,000 per case for any uncompleted first-hand residential property mortgage transaction(s).

Property Valuation Fee4

  • HK$4,000 to HK$6,000 for the issuance of a valuation report if the property value is or less than RMB10 million
  • 0.07% of the property value for the issuance of a valuation report (HKD) if the property value is more than RMB10 million (the exchange rate from Chinese Yuan to Hong Kong Dollar is based on the exchange rate as at the valuation date of the property)

Cancellation Fee

  • A cancellation fee of HK$5,000 and all other fees, costs and expenses incurred (including but not limited to solicitor’s fee, valuation fee and administration fee) will be charged after your acceptance of the confirmation letter for mortgage loan application
  • A cancellation fee of HK$20,000 and all other fees, costs and expenses incurred (including but not limited to solicitor’s fee, valuation fee and administration fee) will be charged if you fail to drawdown the Loan within the availability period for loan drawdown or on or before a later date as the Bank may determine at its absolute discretion, after your acceptance of the confirmation letter for Mortgage Loan application and the facility letter of the Mortgage Loan

Handling Fee

  • 1% of the original loan amount

 

Property Insurance Fee

  • First year: Free property insurance;
  • Premium renewal thereafter: 0.075% of the original loan amount per year

 

Notes:

  1. For first-hand property of Cross-boundary Mortgage Loan, the applicant must setup a “Global Access Account” of The Bank of East Asia (China) Limited before loan drawdown for fund transfer to the property developer in China.
  2. For Cross-boundary Mortgage Loan, all the loan amount cannot be used in the PRC for investment and buying other property purposes (including but not limited to stocks under Shenzhen Stock Connect & Shanghai Stock Connect).
  3. The Mortgagor/Borrower shall be liable for the Bank’s legal fee for the HK legal firm (INCE & CO) and the PRC legal firm (Allbright Law Office) representing the Bank in relation to the Cross-boundary Mortgage Loan together with all disbursements and other expense (if any). The final legal fees as well as the disbursements and other expenses (if any) will be determined by the legal firms on a case-by-case basis.
  4. The Mortgagor/Borrower shall be liable for the Bank’s property valuation fee in relation to Cross-boundary Mortgage Loan.The final charges are determined by Jones Lang LaSalle Incorporated on a case-by-case basis.
  5. For Cross-boundary Mortgage Loan, all the loan amount must be used to settle the purchase price of the first set of the property purchased by the borrower/mortgagor for self-occupancy in the PRC.
  6. The Mortgage /Borrower’s mortgage property is situated at PRC and the mortgage arrangement is subject to the laws of PRC. Mortgage /Borrower shall comply with all laws and regulations in relation to the mortgage property and responsible for all fees and charges being incurred in relation to the mortgage property and the mortgage arrangement under this application.
  7. The above information is for reference only. All applications are subject to the Bank's final approval and the Facility Letter of mortgage loan. The Bank reserves the sole right to vary or cancel the above information and/or amend the related terms and conditions at any time without prior notice.

To borrow or not to borrow? Borrow only if you can repay!

 

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