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1. Monthly Repayment Plan
- Fixed monthly repayment schedule to facilitate better budgeting
- Suitable for those customers with regular monthly income
2. Bi-weekly Repayment Plan
- Loan repayment every two weeks
- Shorter repayment period to save total interest expenses
Case 1 (For reference only)
Ms Lee is the owner of a florist's shop. With stable business and steady cash flow, she chooses Bi-weekly Repayment Plan so as to reduce total interest expense. During the entire mortgage period, she is able to save 14% of total interest expense and shorten the repayment period by almost 3 years.
 |
Monthly Repayment Plan |
Bi-weekly Repayment Plan |
| Mortgage amount |
HK$1,000,000 |
HK$1,000,000 |
| Repayment period |
240 instalments (20 years) |
453 instalments(approx. 17 years) |
Mortgage annual interest rate
(assuming P = 7.5% p.a.)* |
5.25% (P - 2.25%)* |
5.25% (P - 2.25%)* |
| Instalment amount |
HK$6,738 |
HK$3,367# |
| Total mortgage interest expenses |
HK$617,226 |
HK$525,442
(Save by HK$91,783) |
3. Deferred Principal Repayment Plan
- Deferred principal repayment period of up to 36 months
- Financial burden can be mitigated during the early years of the mortgage period as only interest payment is required during the deferred principal repayment period
- Monthly and bi-weekly repayment schedules available for you to choose from
Case 2 (For reference only)
Mr Chan, young, has only a few years' working experience in the Mainland. He is planning to purchase a residential unit. For an easier start, he takes up the Deferred Principal Repayment Plan which reduces the monthly repayment amount by 35% for the first 12 instalments.
|
General Monthly Repayment Plan |
Deferred Principal Repayment Plan |
| Mortgage amount |
HK$1,000,000 |
HK$1,000,000 |
| Repayment period |
240 months (20 years) |
240 months (20 years) |
Mortgage annual interest rate
(assuming P = 7.5% p.a.) * |
5.25% (P - 2.25%)* |
5.25% (P - 2.25%)* |
| Instalment amount for the first 12 instalments |
HK$6,738 |
HK$4,375^
(Reduce by HK$2,363) |
| * | P is the Hong Kong Dollar Prime Lending Rate quoted by Bank of China (Hong Kong) from time to time. The interest rates and examples quoted above are for reference only. |
| # | Bi-weekly repayment amount is calculated as 50% of the monthly repayment amount. |
| ^ | From the 13th instalment onwards, the monthly repayment amount will be adjusted to HK$6,940. |
Remarks:
- The above information is for reference only. The final terms and conditions of the mortgage will be governed by the Facility Letter and any relevant documents signed between the loan applicant and Bank of China (Hong Kong).
- The Mainland mortgage loan application may incur other charges/fees. For details, please contact our staff.
- Bank of China (Hong Kong) reserves the right for the final approval of Mainland mortgage loan application.
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