22 Mar Bank of China (Hong Kong) pioneers Greater Bay Area home mortgage solutions for Hong Kong residents
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Thanks to relaxed policies and improved transport links, the Greater Bay Area (GBA) has become a popular choice for Hong Kong residents looking for property purchase in recent years. Currently, Hong Kong residents can obtain mortgage loans from Hong Kong banks for the purchase of properties in the mainland cities of the Greater Bay Area.
A survey conducted last year by Bank of China (Hong Kong) (BOCHK), involving more than 2,700 respondents, showed that 46% considered property purchase in the GBA for vacation or retirement purposes, with popular destinations including Shenzhen, Guangzhou and Zhongshan. In addition, two-thirds of respondents aged 55 or above expressed interest in purchasing property in the area for retirement.
“The GBA’s interconnectivity policies have led to a notable increase in Hong Kong residents looking for property purchase, starting businesses, or retiring in the region. BOCHK is taking proactive steps by introducing the “Greater Bay Area Loan Series”, expanding our support to cover properties in all nine mainland cities across the region,” says Mina Lau, Deputy General Manager of the Personal Digital Banking Product Department at BOCHK.
“We are committed to constantly improving our services to ensure Hong Kong residents enjoy a seamless property financing journey. By offering a one-stop solution, we aim to facilitate a fulfilling lifestyle in the GBA for them,” she says.
Easing cross-boundary property purchases with BOCHK’s remittance service
On January 24, an announcement came from the Hong Kong Monetary Authority and the People’s Bank of China, introducing new measures to ease the process of remitting funds for property purchases in the GBA for residents of Hong Kong and Macau.
Effective from 26 February 2024. this initiative specifically facilitates fund transfers from Hong Kong to the mainland, permitting Hong Kong residents to remit funds for the settlement of down payments and remaining payments for purchasing properties within the GBA, thereby simplifying the process for potential Hong Kong buyers.
BOCHK was among the first batch of banks to offer direct remittance service for property purchases in the GBA. This service helps customers remit Renminbi, Hong Kong dollars, or other foreign currencies directly from Hong Kong to the mainland banks for settlement of GBA property purchases.
Flexible financing solutions for GBA property buyers
The comprehensive “Greater Bay Area Loan Series” offers flexible financing solutions tailored to accommodate property purchasing needs in the GBA. This includes mortgage loan for Hong Kong residents, enabling them to finance up to 60% of a property’s price or up to HK$10 million (whichever is less). Remarkably, the mortgage comes with a repayment term of up to 30 years.
Moreover, the bank extends its “Greater Bay Area Loan Series” refinancing to Hong Kong residents who already owned properties within the GBA, enabling them to leverage their local assets to enhance their liquidity. This loan, available in Hong Kong dollar, allows borrowing of up to 50% of a property’s current market value or a maximum of HK$10 million (whichever is less), with the flexibility of a repayment period extending up to 20 years.
For those in need of short-term financial support, the “Greater Bay Area Loan Series” personal loan is also available as a viable solution. It can help to cover renovation costs or meet daily living expenses for Hong Kong residents living in the GBA.
Tailored excellence with seamless online-to-offline mortgage advisory services
By leveraging its extensive network, BOCHK has established dedicated mortgage centres in 32 branch locations across Hong Kong. This strategic placement not only enhances the bank’s local mortgage services but also strengthens the relationship with local estate agents in the vicinity.
The mortgage specialists are equipped with extensive knowledge and are committed to outserving customers with professional and personalized service, and demonstrate bank’s commitment in service excellence.
Customer-centric fintech innovation
In the current digital era, the journey towards home ownership begins with searching for a home online. BOCHK is fully aware of this trend and has responded by creating a comprehensive suite of online mortgage services through its proprietary app—the Home Expert App, the first one-stop online homebuying platform in Hong Kong.
This innovative platform offers comprehensive property and mortgage information both for HK and the Greater Bay Area, that guides customers through every step of their homebuying journey, from finding a dream home, free property valuation, mortgage affordability and amortisation calculations, to apply for a mortgage plan.
BOCHK is also the first bank to launch “Green Mortgage Plan”, which jointly works with customers to promote low carbon transformation, sustainable and smart living.
With the Open API technological advancement, the bank not only offers real-time valuation services, but also integrates seamlessly with major property buying websites of major property agent chains.This gives homebuyers access up-to-date valuations, enabling them to make the most informed decisions when it comes to purchasing a home, which being used over 14 million times demonstrated its effectiveness and convenience to users.
It is of great importance to find a reliable and trustworthy partner along your home buying journey. With a commitment to excellence and innovation, BOCHK continues to set the benchmark in the industry, providing tailored mortgage plans and unparalleled service to meet the diverse needs of property buyers.
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Reminder: To borrow or not to borrow? Borrow only if you can repay!