Best Citic Bank Mortgage Plan in Hong Kong
With almost 90 years of history, China CITIC Bank International has a rich heritage and extensive presence from China to HK and from Singapore to Macau and the US. It offers a wide variety of financial services spanning wealth management, personal banking, wholesale banking etc. It is committed to be “the best integrated financial services institution”, with outstanding international standards and capabilities.
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Mortgage Plans
Citic Bank offers mortgage plans to first-time buyers, investors or existing homeowners who are looking to refinance with either Prime Rate-Based Mortgage Plan (P Plan) or HIBOR-Based Mortgage Plan (H Plan).
Citic Bank New Buy Hibor Rate Plans
| Hibor Rate Plan | HIBOR Plan Rate | Interest Rate Cap | Applicable Property Types |
|---|---|---|---|
| Citic Bank International 1 Month HIBOR | H+1.5% | P(5.0%)-2.75% | All property types apart from public housing and HOS Scheme |
| Citic Bank International Prime Rate | P(5.0%)-2.75% | 5.0% | Public Housing and HOS Scheme |
Citic Bank Refinance Prime Rate Plans
| Prime Rate Plan | P Plan Rate | Best Lending Rate (=P) | Applicable Property Types |
|---|---|---|---|
| Citic Bank International 1 Month HIBOR | H+1.5% | P(5.25%)-2.75% | All property types apart from public housing and HOS Scheme |
| Citic Bank International Prime Rate | P(5.25%)-2.75% | 5.25% | Public Housing and HOS Scheme |
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Citic Bank Mortgage Plan: Advantages
Citic Bank offers a wide range of mortgage plans to first-time buyers, investors or existing homeowners, including:
- Prime Rate-Based Mortgage Plan: Interest is calculated based on the HK$ Prime Rate, suitable for new property purchases, trade-ups and refinancing.
- HIBOR-Based Mortgage Plan: The mortgage interest rate and HIBOR fixing period is based on the Hong Kong Interbank Offered Rate (HIBOR)
- "Mortgage Plus": To offset mortgage interest expense
- 90% Mortgage Plan: Borrow up to 90% of the property value.
- Home Ownership Scheme Mortgage Plan: applicable to HOS for eligible applicants
Citic Bank 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 Citic Bank mortgage plans such as mainland properties, public housing, etc.
Mortgage Term with Citic Bank
Property age, types of property and credit scores all affect Citic Bank mortgage terms.
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Property Valuation with Citic Bank
Citic Bank does not have its own valuation department. Banks usually use the valuation service by a third party company like DTZ, CBRE, Savills, Centaline Property Agency and Lei Shing Hong Limited, etc. to provide valuation services.
Citic Bank 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:
1
Requesting banker to get valuations from few more companies. However they may refuse your request. Alternatively, you can apply through MoneySmart. We work with all major mortgage lenders. We can help you to compare, choose and apply for the best mortgage with a higher valuation.
2
For refinance mortgage, you can directly commission a company for property valuation and submit the valuation report to the bank directly. This approach suits under valuated properties like village houses and old buildings. It may double the valuation price. However, not all banks accept reports like this. It is best to check in advance.
Can these properties get a Citic Bank 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 Citic Bank 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 Citic Bank Home Loan
Apply for Citic Bank Mortgage via MoneySmart
Step 1Compare Citic Bank mortgage plans
Applicants can contact our professional mortgage team though our website WhatsApp +852 9665 5218
Step 2Compare Citic Bank mortgage plans
MoneySmart will follow up on your inquiry and provide different mortgage plans
Step 3Apply online with required documents
Fill in a consolidated application form with MoneySmart to apply for a mortgage with different banks. 👍🏻
Step 4Check the application form and sign it
The bank that you have applied for will contact you directly 📞to collect the necessary documents. Applicants can get in touch with the mortgage department directly for future inquiries.
Step 5Draw down your mortgage
We will remind ⏰ you upon successful application and provide you with suggestions and assistance you may need until you have successfully got the mortgage.
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Citic Bank Mortgage Plans FAQ
Does Citic Bank accept mortgage applications from properties with building order?
- Citic Bank does not accept mortgage applications from properties with building order.
Can I apply for a mortgage without a fixed income? Can I apply with my asset instead?
- Self-employed applicants are required to provide most recent 6-month of bank statement as income proof. Applicants can also apply through Asset Based Lending using properties and cash etc.
Can I apply for mortgages without a tax bill?
- Citic Bank does not accept mortgage applications without a tax bill.
Why Get a Citic Bank 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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