Chiyu Banking Corporation Ltd.

Key Facts Statement (KFS)

Terms and Conditions for Services/Products

Residential Mortgage Programmes

Our tailor-made mortgage plan enables you to realise your dream of owning a home. Benefits include a high loan amount, long repayment period, preferred interest rates, as well as free legal and mortgage advice and property valuation.
Mortgage Hotline: 2232 3625

Key Facts Statement (KFS) for Residential Mortgage Loan

All-You-Want Mortgage Scheme

Enjoy flexible repayments to save mortgage interest expenses

Key Facts Statement (KFS) for Residential Mortgage Loan

A mortgage does not have to be a burden to your life while owning a home is your lifetime dream. ChiyuBank now presents you with a new concept of wealth management by bringing mortgage and current accounts under one roof - "All-You-Want Mortgage Scheme". You can adjust monthly repayments as you like, to suit your lifestyle and budget, and save on interest expenses. No more need to pay the handling charge and annual fee! Thus, you will be able to buy your first home, trade up or refinance your existing property sooner and easier than you think.

All-You-Mortgage Scheme

Flexible repayment with interest saving
- Offers you the flexibility in adjusting your monthly repayment schedule according to your financial needs and preference.
- Unlike under general mortgage plans, interest under this scheme is calculated on the daily outstanding net balance of your mortgage loan (Net Balance = Mortgage Balance - Deposits Balance).
- Save your interest expense and shorten the repayment period by depositing extra fund on your mortgage loan account whenever you want.
Convenient withdrawals
- To meet your financial or investment needs, you can withdraw extra deposits from your account via ATMs or by cheques anytime you like.
- With "Internet Banking", "Phone Banking" or "Mobile Banking", you can easily access our round-the-clock fund transfer service which transcends any boundaries.
Waivers on handling charge and annual fee.
Easy application. Simply visit any of our branches and bring along your personal identity document, the property information and your income proof to facilitate the application process.

All-You-Want Mortgage Scheme Vs General Mortgage Plan

All-You-Want Mortgage Scheme General Mortgage Plan

Account mode All-in-one mortgage and current account Pure mortgage plan with fixed monthly repayments and period

Partial repayment Allows you to enjoy the benefit of flexible repayment by making extra deposits anytime, with no minimum or limit set on the number of transactions*. No handling fee charged Additional interest or penalty incurred, e.g. 3% for 1st year and 2% for 2nd year; subject to a minimum amount of HKD50,000 in normal case

Mortgage Interest Interest calculated on the daily net balance of your loan to help you save interest everyday Fixed interest calculated on a monthly basis

Convenient withdrawals Easy and simple withdrawals of extra deposits from your mortgage account via ATMs or by cheques anytime; 24-hour access to our "Internet Banking", "Phone Banking" or "Mobile Banking" for fund transfers Not available

* The part of extra deposits in excess of the upper limit is subject to service charge. Please contact our branch staff for more details.

Example (For your reference only)

Assume P=5%p.a.
Mortgage loan amount: HKD1,000,000
Repayment period: 20 years (240 months)
Extra monthly deposits: HKD3,000 (assuming that no withdrawal of extra monthly deposits is made until full repayment of the entire loan)

All-You-Want Mortgage Scheme General Mortgage Plan

Mortgage interest rate 3%(P-2%) 2.5%(P-2.5%)

Monthly repayment HKD5,546 HKD5,300

Total mortgage interest expenses HKD180,997 HKD271,699

Your saving on interest expenses HKD90,702 Nil

Actual repayment period 138 months(Shortened by 102 months) 240 months

* P is the Hong Kong Dollar Prime Lending Rate quoted by Chiyu Banking Corporation Limited from time to time.
Mortgage Hotline: (852) 2232 3625
Remarks:

We will open a current account for customers who apply for "All-You-Want Mortgage Scheme", in order for them to enjoy deposit and withdrawal services immediately upon successful drawdown of their mortgage loan.
The repayment period and possible interest savings for "All-You-Want Mortgage Scheme" will vary according to such factors as the mortgage loan amount, mortgage period and total extra deposits. For details, please contact any of our branches.
The above information is for reference only. The final terms and conditions of the mortgage loan will be subject to the Facility Letter and any relevant documents signed between us and the applicants.

Smart Mortgage Scheme

Take advantage of high yield deposits while buying your home

Key Facts Statement (KFS) for Residential Mortgage Loan

How can you get a higher interest rate on your savings while buying your home? With our "Smart Mortgage Scheme", you are entitled to an extra deposit account with preferential interest rate, enabling you to enjoy steady wealth growth.

Smart Mortgage Scheme

Higher deposits yield
- Upon your successful application for our "Smart Mortgage Scheme", you are eligible to open an extra deposit account (referred to as "the account" hereafter), combining the features of both savings and current accounts with a preferential interest rate.
- The annual interest rate of the account is set at up to P-2.25%p.a., which is calculated on your daily balance, enabling you to earn more interest income than that generated from a general HKD savings account or from fixed deposits.
Flexible withdrawals
- To meet your financial or investment needs, you can withdraw cash from the account via ATMs or by cheques anytime you like.
- With our "Internet Banking", "Phone Banking" or "Mobile Banking", you can easily access our round-the-clock fund transfer service which transcends any boundaries.
Waivers on handling charge and annual fee.
Detailed records: Monthly account statements on your interest returns and in/out transactions will be provided for your easy reference.
Easy application. Simply visit any of our branches and bring along your personal identity document, the property information and your income proof to facilitate the application process.

Smart Mortgage Scheme Vs General Mortgage Plan

Smart Mortgage Scheme General Mortgage Plan

Account type Mortgage account + deposit account with a preferential interest rate Pure mortgage plan with fixed monthly repayments and period

Deposit Interest rate Same interest rate for your deposit account as for your mortgage loan. Current rate can be as high as P-2.25%, calculated on daily deposit balance with monthly interest payment General savings interest rate now at 0.01%; interest paid semi-annually

Convenient withdrawals Easy and simple withdrawals of your deposit from the account via ATMs or by cheques; 24-hour access to our "Internet Banking", "Phone Banking" or "Mobile Banking" for fund transfers No cheque-book provided with general

Example (For your reference only):

Assume P = 5%p.a.
Mortgage loan amount: HKD1,000,00
Repayment period: 20 years (240 months)
Extra monthly deposits: HKD3,000
(assuming that no withdrawal of extra monthly deposit is made until full repayment of the entire loan)

Smart Mortgage Scheme General Mortgage Plan

Mortgage interest rate 2.75%(P-2.25%) 2.5%(P-2.5%)

Monthly repayment HKD5,422 HKD5,300

Total mortgage interest expenses HKD301,199 HKD271,766

Annual interest rate on savings account (quoted at Day/Month/Year) 2.75% 0.01%

Total interest income from savings account HKD91,887 HKD723

Total net interest expensess# HKD209,312 HKD271,043

Saving on interest expenses HKD61,731 Nil

# Net interest expenses = Total mortgage interest expenses - total interest income on savings account
* P is the Hong Kong Dollar Prime Lending Rate quoted by Chiyu Banking Corporation Limited from time to time.
Mortgage Hotline: (852) 2232 3625
Remarks:

We will open the account for customers who apply for "Smart Mortgage Scheme", in order for them to enjoy a preferential interest rate immediately upon successful drawdown of their mortgage loan.
The account offers a preferential interest rate for an amount up to 50% of the total outstanding balance of the customers' mortgage loan. This upper limit will be adjusted in line with the 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 Chiyu Bank from time to time, according to the total credit balance of the Designated Current Account.
The preferential interest rate on the account will be terminated in the event of loan payment default.
The above information is for reference only. The final terms and conditions of the mortgage loan will be subject to the Facility Letter and any relevant documents signed between us and the applicants.

Reverse Mortgage Programme

The Reverse Mortgage Programme enables people aged 55 or above to enjoy greater financial flexibility by pledging their residential properties in Hong Kong for a reverse mortgage loan. While continuing to live in the mortgaged property for the rest of life, the borrower is not required to repay the outstanding loan balance.

The Programme is operated by HKMC Insurance Limited, a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited.

Product Features and Benefits

Flexible payment terms
Borrower can choose to receive monthly payouts for a fixed period of 10, 15 or 20 years or throughout the borrower’s entire life, and may apply to switch to another payment term after drawdown of a reverse mortgage loan. The monthly payout amount will remain unchanged throughout the payment term. Once the amount is determined, it will not be affected by the property price, interest rate, inflation/deflation or any other economic factors. However, if the borrower takes out a lump-sum payout, the amount of the subsequent monthly payouts will be reduced subject to the lumpsum payout amount taken out.

Lump-sum payouts
Borrower can also choose to receive lump-sum payouts at the time of initial loan application and/or any time during the selected payment term for specific purposes such as refinancing of an existing reverse mortgage or full repayment of other existing mortgage of the borrower’s property which is pledged as security for the relevant reverse mortgage loan (not applicable to the property owned by a limited company), settlement of land premium for subsidised housing property, or payment for home improvement, repairs and maintenance and/or medical expenses.

Flexible arrangement to rent out property
Mortgaged property can be rented out under specific circumstances for a higher monthly income.

Lifetime home residence
After taking out a reverse mortgage loan, property owner is entitled to stay in the property for the rest of his/her life, even after the payment term is due. However, interest and mortgage insurance premium will be debited to the outstanding loan amount. Lender will have the right to terminate the reverse mortgage loan under specific circumstances. If the outstanding loan amount is not repaid in full, the lender will take possession of and dispose of the property to recover the outstanding loan amount, in which case all occupants of the property will need to move out.

No repayment during lifetime
In general, the borrower is not required to repay the outstanding loan amount during his lifetime, unless the reverse mortgage loan is terminated under specific circumstances.

No penalty for early repayment of loan
Full repayment of reverse mortgage loan and redemption of mortgaged property can be made at any time without penalty. However, partial repayment is not accepted.

Six-month cooling-off period
If a reverse mortgage loan is terminated for whatever reasons within the first 6 months and the outstanding loan amount is fully repaid on the proposed repayment date, a refund and waiver of mortgage insurance premium will be given. However, the borrower is still required to bear the accrued interest, financed fees (if any) and the relevant fees in relation to the termination of the reverse mortgage loan.

Eligibility for applying for a Reverse Mortgage Loan
Borrower must:

be aged 55 or above (or aged 60 or above for owners of subsidised sale flats with unpaid land premium) and a holder of a valid Hong Kong identity card; and

not be an undischarged bankrupt or otherwise subject to bankruptcy petition or individual voluntary arrangement.

Property offered as security must:

be a residential property in Hong Kong (property acquired by deed of gift may be considered);

to be owned by:

	(i) the borrower as sole and beneficial owner or as joint tenants (if there is more than one borrower); or
	(ii) a limited company, incorporated in Hong Kong, wholly and directly held by the borrower (or if there is more than one borrower, all borrowers);

not exceed 50 years of age (otherwise it will be considered on a case-by-case basis and subject to building inspection);

not be subject to any resale restrictions (except for the alienation restriction of subsidised sale flats imposed by the relevant authority); and

not be rented out

	(The borrower may apply to rent out the mortgaged property if it has been owned for at least one year and all the borrowers have:
	(i) declared that they have retired; or
	(ii) moved out to obtain elderly or medical care.
	If the property is a subsidised sale flat^ with unpaid land premium, the borrower must obtain a written consent from the relevant authority, in addition to the above requirement of property ownership.)

^For a subsidised sale flat with unpaid land premium, it must be under the Home Ownership Scheme, Private Sector Participation Scheme, Tenants Purchase Scheme and Green Form Subsidised Home Ownership Scheme of the Hong Kong Housing Authority (HA), the Flat-For-Sale Scheme, Sandwich Class Housing Scheme and Subsidised Sale Flats Projects of the Hong Kong Housing Society (HS), or any other subsidised housing schemes as accepted by HKMCI from time to time.

Remark:
The above information is for reference only. For detail please refer to The Hong Kong Mortgage Corporation Limited’s website or contact our bank staff.

About Home Purchase

Equipped with professional knowledge and proven experience in Mortgage Services, we provide Home Purchase Procedure and Frequently Ask Questions (FAQs) to help you make home-purchasing much easier.

Home Purchase Procedure

What process is involved with buying a property?

> Buying a property under Construction
> Buying a completed Property

Buying a property under Construction

Steps (Days required) Procedure

Step 1

Choose a desirable property.

Step 2(3 - 14 Days)

Sign the Preliminary Sales & Purchase Agreement and pay the initial deposit.

Apply for a mortgage loan from a bank, get property valuation and choose a solicitor.

Step 3(30 - 60 Days)

Sign the Formal Sales & Purchase Agreement at solicitor's office and pay the deposit and stamp duty.

Approval from bank on mortgage loan application.

Step 4

Sign the Equitable Mortgage Agreement, Trust Deed and other legal documents at the solicitor's office; pay the balance of the property value, solicitor's fees and other related expenses.

Drawdown of approved bank loan amount to pay part of the property price.

Step 5(Note the construction progress)

Prompt settlement of loan repayment by instalments or sale of property for repayment.

Step 6(14 - 30 Days)

Receive occupancy permit.

Sign all official documents, including the Formal Sales & Purchase Agreement at solicitor's office, settle related expenses, check the property and move in.

Buying a Completed Property

Steps (Days required) Procedure

Step1

Choose a desirable property.

Step2(7 - 14 Days)

Sign the Preliminary Sales & Purchase Agreement and pay the initial deposit.

Apply for a mortgage loan from a bank, get property valuation and choose a solicitor.

Step 3(30 - 60 Days)

Sign the Formal Sales & Purchase Agreement at solicitor's office and pay the deposit and stamp duty.

Approval from bank on mortgage loan application.

Step 4

Sign the Assignment, Mortgage Agreement, Trust Deed and other legal documents at the solicitor's office; pay the solicitor's fees, pay the balance of the property value and other related expenses.

Drawdown of approved bank loan amount to pay part of the property price.

Step 5

Take over the property and move in.

Prompt settlement of loan repayment by instalments or sale of property for repayment.

FAQs

The following are answers to some frequently asked questions that you may find useful when purchasing your own home

> If I have found a suitable unit, how much do I have to pay for the first instalment?
It all depends on your income and how much you can afford to spend on your property. Generally speaking, your first down-payment is 40% of the property value, with the balance of 60% to be settled by bank loan. If you want to pay less for down-payment, you can apply to the Hong Kong Mortgage Corporation for a 90% mortgage loan guarantee. Alternatively, you can apply for government loans such as the "Home Assistance Loan Scheme" provided you meet the eligibility criteria.

> Other than privately-owned properties, do I have other housing schemes to choose from?
Yes. There are public housing schemes and those subsidised by the government such as the Home Ownership Scheme, Tenants Purchase Scheme and Sandwich Class Housing Loan Scheme. Each Scheme has its own specific requirements for the applicant.

> Apart from the down-payment, what are the other expenses involved?
You should take into account the related expenses which include the real estate agent's commission, solicitor's fees (including sales & purchase agreement, transfer deed and mortgage agreement), stamp duty, and search and registration fees charged by the Land Registry.

> If I want to get a mortgage loan from a bank, what kind of properties would be more acceptable or preferred by the bank?
The age (since completion) of the property and its quality are the two major factors a bank considers when granting a mortgage loan. A more conservative attitude would be adopted towards older buildings. Therefore it would be more desirable to choose new, well-managed and well-maintained properties.

> There are so many repayment alternatives provided by banks. How do I know which one best fits my requirements?
Apart from considering your own financial position, you should also find out the various repayment alternatives available in the market before making your decision. For example, repayments can be made on monthly or bi-weekly basis, in progressive or fixed amount, at a fixed or variable tenure.

> What are the documents I need to submit to apply for a mortgage loan from a bank?
You will have to bring along the preliminary or formal sales and purchase agreement, your identity card, and the original copy of your income proof (including income tax statement, salary statement and bank statement). For corporate applicants, you will also need the business registration certificate, company registration, list of directors and the company's memorandum and articles of association.

> Will the bank accept guarantors for a mortgage loan?
Generally speaking, most banks do accept a guarantor nominated by the applicant, on the condition that the said guarantor must be directly related to the applicant. The identity card of the guarantor and his/her financial proof must also be presented.

Secured Mainland China Property Instalment Loan

The rapid development of Greater Bay Area attracts more and more Hong Kong Residents to purchase properties in Mainland China for their own use or for investment. Chiyu Bank strives to provide professional cross-border services to customers and has launched “Secured Mainland China Property Instalment Loan” assists customers to manage their wealth easily and flexibly by leveraging the existing properties.

Eligible Property type
Cover designated Residential Properties and Gongyu located at Beijing, Shanghai, Guangzhou and Shenzhen area¹

Loan to value ratio
Up to 50% of appraised property value²

Loan Tenor
Up to 20 years³

Loan amount
HKD 1million or above⁴

Features
Loan Settlement in HKD
Loan plan is based on Hong Kong Dollar Prime Rate with loan and repayment calculated in Hong Kong Dollar.

Simple and Easy
A one-stop service in Hong Kong that saves your processing time from travelling between Hong Kong and the Mainland China.

Safe and reliable
Legal documents are handled by Chiyu Bank's designated solicitors in Hong Kong and in Mainland China.

Remarks:

Chiyu Bank reserves the right to make the final decision on the definition of eligible regions.
The maximum loan amount for properties in Beijing, Shanghai, Guangzhou and Shenzhen area is 50% of the appraised property value. The actual loan amount is subject to final approval.
Loan tenor of residential properties mortgage is up to 20 years, while the Loan tenor of Gong-Yu mortgage is up to 10 years, Loan tenor should not exist “allotted period of land use” on the Premises Permit of mortgaged properties, (if the Premises Permit does not indicate “allotted period of land use”, Borrower ought to provide the land use certificate for verification), the actual period is subject to the final approval.
The minimum loan amount is HKD 1 million, the maximum loan amount for properties in Beijing, Shanghai, Guangzhou, and Shenzhen area can reach HKD 50 million, subject to final approval.