Best Chiyu Banking Corporation Mortgage Plan in Hong Kong
Established 70 years ago in Hong Kong, Chiyu Bank is committed to providing professional banking and financial services to customers in Hong Kong, mainland and overseas. The Bank owns a network of 24 branches in Hong Kong as well as 5 branches and sub-branches located in Mainland China.
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Mortgage Plans
Chiyu Banking mortgage plan enables customers to realise the dream of owning a home. The plan is characterized by a high loan amount, long repayment period, preferred interest rates, and free legal and mortgage advice and property valuation.
Chiyu Banking Corporation New Buy Mortgage Rate Plans
| New Buy Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Chiyu Bank 1 Month HIBOR | H+1.45% | P(5.0%)-2.5% | All property types apart from public housing and HOS Scheme |
| Chiyu Bank Prime Rate | P(5.0%)-2.5% | 5.0% | Public Housing and HOS Scheme |
Chiyu Banking Corporation Refinance Mortgage Rate Plans
| Refinance Plan | Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Chiyu Bank 1 Month HIBOR | H+1.5% | P(5.0%)-2.5% | All property types apart from public housing and HOS Scheme |
| Chiyu Bank Prime Rate | P(5.0%)-2.5% | 5.0% | Public Housing and HOS Scheme |
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Chiyu Banking Corporation Mortgage Plan: Advantages
With Chiyu Banking "All-You-Want Mortgage Scheme", customers can adjust monthly repayments however they like, to suit one’s lifestyle and budget, and save on interest expenses with no handling charge and annual fee. The benefits of the plans are outlined below:
- Flexible repayment with interest saving: enjoy the flexibility in adjusting your monthly repayment schedule according to your financial needs and preference. Interest under is calculated on the daily outstanding net balance of your mortgage loan so you can save on your interest expense.
- Enjoy a cash rebate of 0.8-1%.
- No penalty period: Chiyu Banking has no tie-in period but the mortgage comes with a minimum repayment amount.
- Waivers on handling charges and annual fee.
Chiyu Banking Corporation Mortgage Plan: Disadvantages
When the business of a smaller bank is at risk, the possibility of revoking the loan is higher than that of a large bank. Back in 2008, during the financial crisis , small banks once tightened their mortgages and revoked loans directly. Moreover, the application usually takes longer as the bank is smaller in scale.
Mortgage Term with Chiyu Banking Corporation
Property Valuation with Chiyu Banking Corporation
Chiyu Banking Corporation does not have their own valuation department. They usually use the valuation service by a third party company like CBRE, and Centaline Property Agency etc. to provide valuation services.
Chiyu Banking Corporation 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 Chiyu Banking Corporation mortgage?
| Property Type | Y/N | Remarks |
|---|---|---|
| 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: 80-90% LTV, depending on mortgage amount 10 Million or above: 50% LTV |
| Tong Lau | Y | Less than 10 Million: 80-90% 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 Chiyu Banking Corporation Mortgage
The “All-You-Want” Mortgage Scheme allows applicants to deposit their repayment directly into Chiyu Bank’s accounts as repayment, providing extra flexibility in adjusting repayment schedule.
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 Chiyu Banking Corporation Home Loan
Apply for Chiyu Banking Corporation 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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Chiyu Banking Corporation Mortgage Plans FAQ
What documents are required when applying for Chiyu Banking Corporation mortgage?
- To apply for Chiyu Banking Corporation 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.
Does Chiyu Banking Corporation impose any restriction on the property with building order?
- Chiyu Banking Corporation 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?
- If you do not have a fixed income, you can apply for Chiyu Banking Corporation’s mortgages with the most recent 6-month of bank statement as income proof. Applicants can also apply through Asset Based Lending such as properties or stocks.
Can I apply for a pre-approved mortgage?
- Chiyu Banking Corporation does not accept mortgage application without a tax bill. Applicants can consider applying through Asset Based Lending (ABL) if he/ she has more assets.
Why Get a Chiyu Banking Corporation Mortgage through MoneySmart?
- Best Mortgage Offers: Get SPECIAL interest rate offer from 2.5% and cash rebate up to 1.5%.
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