For the "Key Facts Statement (KFS) for Residential Mortgage Loan", please click here.
"Smart" Mortgage Scheme
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Enjoy preferential deposit interest rate equivalent to mortgage interest rate
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Higher Yield Deposits
- "Smart" Mortgage Scheme comes with a Designated Current Account bearing a preferential interest rate. It also combines the features of both savings and current accounts.
- Your mortgage account and Designated Current 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.
- By linking with 3 Designated Current Accounts at maximum, you can share with your family to enjoy higher interest income.
Flexible Withdrawals
To meet your financial needs, you can withdraw deposits anytime from your account via ATMs or by cheques. What's more, you can easily access our round-the-clock fund transfer service wherever you are via BOCHK Internet Banking or Phone Banking.
Waiver on Charges to Save More
Waiver on handling charge and annual fee means you can save more.
Detailed Records at a Glance
For your easy reference, "Smart" Mortgage Scheme provides you with monthly Designated Current Account and mortgage account statements which clearly list out every in / out transaction, account balance, mortgage loan details and the like.
"Smart" Mortgage Scheme Vs General Mortgage Plan
| "Smart" Mortgage Scheme | General Mortgage Plan | |
|---|---|---|
| Account type | Mortgage account + Designated Current Account with a preferential interest rate | Pure mortgage plan with fixed monthly repayment schedule and amount |
| Deposit interest rate | The mortgage and Designated Current Account share the same interest rate. For the latter one, interest is calculated based on daily deposit balance with monthly interest payment | General savings interest rate is lower than mortgage interest rate (at 0.01%+ quoted in October 2014) with interest paid semiannually |
| Withdrawals | Convenient withdrawals of deposits by cheques or via ATMs anytime; 24-hour access to BOCHK Internet Banking or Phone Banking for fund transfer | Cheque issuance via general savings accounts is not available |
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 Designated Current 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 Designated Current Account | 2.35% | --- |
| Annual interest rate of savings account+ (quoted in October 2014) |
0.01% | |
| Total interest income on Designated Current 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 Designated Current Account.
Exclusive Privileges
- Fee waivers on instant property valuation, mortgage enquiries and the like
- Enjoy premium discount upon enrollment for Fire Insurance and/or Home Insurance via the Bank
- Annual fee waiver of BOC Credit Card throughout the entire mortgage period
Simple Application
Act now and make online appointment for mortgage application!
For details, please call our Mortgage Service Hotline at +852 3669 3233 or visit any of the branches of BOCHK.
Reminder: To borrow or not to borrow? Borrow only if you can repay!
Terms and Conditions:
- Bank of China (Hong Kong) Limited (the "Bank") will open a Designated Current 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.
- For individual borrower, the Inter-linkage Deposit Account shall only be the personal or joint account held by or with the Borrower, Borrower's immediate family members (i.e. parents, spouse, children), Guarantor, Mortgagor (“Eligible Individual Customer”) (For joint account, only applicable to the combination of Eligible Individual Customer).
- For company borrower, the Inter-linkage Deposit Account shall only be the personal or joint account held by or with the Borrower, Guarantor, spouse of the Guarantor, Mortgagor (“Eligible Company Customer”) (For joint account, only applicable to the combination of Eligible Company Customer).
- 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.
- If there are 2 Inter-linkage Deposit Accounts, the Bank will determine the upper limit of deposit balance of each Inter-linkage Deposit Account to which the preferential interest rate applies to be 25% of the outstanding balance of the mortgage loan. This upper limit will be adjusted in line with the total outstanding balance of the mortgage loan.
- If there are 3 Inter-linkage Deposit Accounts, the Bank will determine the upper limit of deposit balance of each Inter-linkage Deposit Account to which the preferential interest rate applies to be 17%(A/C 1); 17%(A/C 2); 16%(A/C 3) of the 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 Designated Current Account.
- The preferential interest rate offer will be terminated in case of loan payment default. In this case, this Designated Current 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 "Mortgage Insurance Programme".
- 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.
- Fire Insurance and Home Insurance are underwritten by Bank of China Group Insurance Company Limited ("BOCG Insurance"). The Bank is one of the insurance agents of BOCG Insurance. Details of the coverage are subject to the policy documents 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.
