Enjoy preferential deposit interest rate equivalent to mortgage interest rate

Bank of China (Hong Kong)'s "Smart" Mortgage Scheme brings you a deposit account with a preferential interest rate, allowing you to earn higher interest returns on your savings in addition to owning your dream home.

• "Smart" Mortgage Scheme comes with a deposit account bearing a preferential interest rate, which also combines the features of both savings and current accounts.
• Your mortgage account and deposit account will share the same interest rate. For the latter one, interest is calculated based on your daily balance and then you are able to earn more interest income than that generated from a general HKD savings account.

• To meet your financial needs, you can withdraw deposits anytime from your account via ATMs or by cheques. What's more, you can conveniently access our round-the-clock fund transfer service wherever you are via BOCHK Internet Banking or Phone Banking.

• Waiver on handling charge and annual fee means you can save more.

• For your easy reference, "Smart" Mortgage Scheme provides you with monthly deposit account and mortgage account statements which clearly list out every in/out transaction, account balance, mortgage loan details and the like.

Example (For reference only):
Assume P = 5%p.a.
Mortgage loan amount: HK$1,500,000
Loan tenor: 20 years (240 months)
The deposit amount of “Smart” Mortgage deposit account/general savings account upon loan drawdown date: HK$200,000
Extra monthly deposits: HK$3,500 (Assuming that no withdrawal of deposits is made until full repayment of the entire loan)

	"Smart" Mortgage Scheme	General Mortgage Plan
Annual mortgage interest rate	2.35% (P-2.65%)^	2.2% (P-2.8%)^
Monthly repayment amount	HK$7,840	HK$7,732
Total mortgage interest expenses	HK$381,367	HK$355,381
Preferential annual interest rate on deposit account	2.35%	---
Annual interest rate of savings account+ (quoted in August 2009)	0.01%
Total interest income on deposit account	HK$146,633	HK$1,237
Total net interest expenses#	HK$234,734	HK$354,144
Your saving on interest expenses	HK$119,410	---

⁺ Savings interest rate may vary according to the daily account balance. For details, please contact our staff.
P is the Hong Kong Dollar Prime Lending Rate quoted by Bank of China (Hong Kong) Limited from time to time.
^{^} The interest rates are quoted for reference only.
^# Total net interest expenses = Total mortgage interest expenses - total interest income on deposit account.

• Fee waivers on instant property valuation, mortgage enquiries and the like
• Special discount on the premium for the fire insurance purchased through our Bank
• Annual fee waiver of BOC Credit Card throughout the entire mortgage period

Terms and Conditions:

• Bank of China (Hong Kong) Limited (the "Bank") will open a deposit account for the customer who applies for "Smart" Mortgage Scheme so that he/she can enjoy a preferential interest rate upon successful drawdown of the mortgage loan.
• The upper limit of deposits bearing a preferential interest rate is up to 50% of the total outstanding balance of the mortgage loan. This upper limit will be adjusted in line with the total outstanding balance of the mortgage loan. The part of deposits in excess of the upper limit can enjoy an interest rate based on the latest tiered interest rate structure for Hong Kong Dollar Savings Accounts quoted by the Bank from time to time, according to the total credit balance of the deposit account.
• The preferential interest rate offer will be terminated in case of loan payment default. In this case, this deposit account will apply the interest rate based on the latest tiered interest rate structure for Hong Kong Dollar Savings Accounts quoted by the Bank from time to time.
• The above mortgage scheme is not applicable to designated loan schemes and property types. For details, please contact our staff.
• If the loan-to-value ratio is above 70%, customers are required to apply for either "Mortgage Insurance Programme" or "Smart Easy" Top Up Mortgage.
• The above information is for reference only. The Bank may at its absolute discretion approve or reject any application for credit facilities and mortgage and may decline any application without assigning any reason. The final terms and conditions of the mortgage will be governed by the Facility Letter and other relevant documents signed between the loan applicant and the Bank.
• The fire insurance plan is underwritten by Bank of China Group Insurance Company Limited ("BOCG Insurance"). The Bank is one of the agents of BOCG Insurance. Details of coverage are subject to the terms and conditions stipulated in the policy issued by BOCG Insurance.
• The Bank reserves the right to amend and/or withhold the above offer, relevant terms and conditions of the above promotional offers at its discretion without prior notice.
• In case of any discrepancies between the Chinese and English version of this web page, the Chinese version shall prevail.