- 贷款利息以最优惠利率（P）减去银行定值后为准，一般为 P减2.80%至3.10%水准；
Presently, most banks in China and Hong Kong offer mortgage services for the real estate in China to Hong Kong people. The application procedure is largely the same, with banks in China offering lower loan-to-value ratios and shorter mortgage repayment terms, so applicants can choose a plan that suits their personal circumstances.
1. Check whether the bank offers mortgage services to the applicant's property, enquire about the loan amount and the loan tenure, complete the application form and submit the relevant documents.
2. It takes 10-15 working days for the bank to process the application to conduct a property value assessment for the second-hand property. If approved, both parties will need to sign a mortgage contract in which the loan year, interest rate, repayment method and other details are clearly stated.
3. Some banks may require the applicant to buy mortgage insurance with the mortgage bank as the first beneficiary. The policy will be held by the bank until the loan principal and interest are fully repaid.
4. The applicant will be required to submit the mortgage deed and other documents to the notary's office for registration of the mortgage. The deed is held by the mortgage bank until the loan is repaid.
5. Once the procedure is completed, the mortgage bank would allocate funds to a monitored account to finance the purchase of the property.
Documents required for loan application
- Proof of identity: Banks in China require Mainland Travel Permit for Hong Kong and Macau, Mainland Travel Permit for Taiwan Residents or passport. If the documents are in English, a Chinese translation must be provided and notarized. Proof of income(recent bank account statements, tax statements, etc.) is subject to a recourse period ranging from 6 months to 1 year, depending on individual bank regulations.
- Proof of address (electricity, water bills, etc.).
- Proof of ownership of the property: A pre-sale contract for first-hand transactions and a sale and purchase contract and title deeds for second-hand transactions.
- Some banks may require additional documents from applicants, such as single status/marriage certificates, etc.
Points to Note:
(1) Banks in Hong Kong
- Residential mortgage plans are generally available up to 70% of the property value/valuation and can be repaid over a period of 25 to 30 years
- Commercial mortgage plans are available up to 50% of the property's value/valuation and can be repaid over period of approximately 10 years.
- The interest rate is based on the prime rate (P) minus the bank's fixed value, which is typically P minus 2.80% to 3.10%.
- The penalty period of prepayment for banks in Hong Kong covers the first 2 to 3 years.
(2) Banks in China
- As foreigners cannot apply for CPF loans, banks in China usually offer commercial loans to them with higher interest rates with lower loan amounts. Residential mortgage plans are available at approximately 50% and can be repaid over a maximum period of 30 years (The sum of the repayment period and the applicant's age at the time cannot exceed 70 years): .
- The amount for commercial mortgage plans is normally no more than 40% and can be repaid over a period of approximately 10 years.
- The interest rate is based on the base rate (P) discounted by the bank's discount percentage, usually at the level of P multiplied by 0.8 to 0.9.
- The penalty period of prepayment for banks in China usually covers the entire period of mortgage repayment.
Due to the differences in bank policies and mortgage procedures, the above information is only general and should be verified with individual banks.