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| Home>Loans & Mortgages>Loans & Mortgages Frequently Asked Questions |
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| Can't find the answer elsewhere to a question about Loan or Mortgage? Have a read through our Loan & Mortgage FAQs below for responses to the most frequently asked questions. |
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| Loan in General |
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| Why might I need a loan? |
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| Most people borrow money to ease their cash flow or to settle their credit card debts. |
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| Below are the most common purposes for a loan: |
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- Pay off credit card debts
- Wealth Planning
- Wedding expenses
- New parent expenses
- Home furnishing or renovation expenses
- Further education
- Emergency medical expenses
- Unanticipated cash needs, etc
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| What should I consider before applying for a loan? |
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| The interest rate should no doubt be the top-of-mind factor, as it will directly determine the cost of a loan. But this should not be the only consideration. You should also look for the loan features that best suit you, such as possible loan size to meet your needs, tenor choices that can match what you can afford and other available credit services. |
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| You should carefully study the related loan terms and conditions and make sure that there are no other costs or hidden fees involved. Also, the ease of application process, approval turnaround time, convenience of branch network and available application channels should all be taken into account. It is recommended that you review the background of banks or financial institutions you are interested in and chose one with a good reputation, that is reliable, offers clear terms and conditions and falls under the supervision of the Hong Kong Monetary Authority. As a smart customer, you should consult the customer representative of your preferred bank or financial institution to seek advice on a lending solution that best meets your needs before making an application. |
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| How much should I borrow? |
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| You should only borrow what you actually need. Also, you must take into consideration your ability to repay the loan, on top of your necessary daily expenses, to make sure there will be no great impact on your daily living and you will not be short of money. |
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| Citibank provide loans up to 21 times your monthly salary or HK$500,000 (whichever is lower) for "Card Debt Consolidation Loan" and up to 4 times your monthly salary or HK$500,000 (whichever is lower) for "Speedy Cash". The final approved loan amount is subject to change in accordance with the circumstances of individual cases. Please contact Citibank for further details. |
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| Over what period should I choose to repay the loan? |
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| The choice of repayment term will immediately affect your monthly repayment amount. You should balance the loan repayment term and the monthly repayment amount you can afford in order to ensure there will be enough money left for your daily living. A longer repayment term will help lower your monthly repayment amount, but the total interest paid will be higher. You should carefully determine your loan repayment term according to your financial capabilities. |
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| Citibank offers loan repayment terms from 12 to 60 months for added flexibility. The approved loan repayment term is subject to the circumstances of individual cases. Please contact Citibank for further details. |
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| What is a credit report and a credit score? |
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| A credit report is a record of a customer's credit history, which is provided by banks, financial institutions or from the public records. Banks and financial institutions will take a customer's credit report as a reference when considering a personal loan or credit card application. Generally, banks and financial institutions will obtain an applicant's credit report, including credit account information, account delinquency data, recent credit enquiries and historical data from a credit reference agency after receipt of a loan application. |
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| A credit score is a numerical snapshot of a customer's credit report at a particular time. A credit score is generated according to a customer's credit account information, account delinquency data, recent credit enquiries, historical data and public record data. A credit score is one of the pieces of information banks and financial institutions will refer to in their credit assessment process. Banks and financial institutions will also make decisions according to their own risk acceptance level in lending, their own internal credit score, an applicant's demographic and financial information, their relationship with an applicant, available collateral and the availability of a guarantor. |
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| If you wish to learn more about the credit assessment process and have access to your credit report, you can do this by applying to Citibank (Hong Kong) Limited at PO Box 20151 Hennessy Road Post Office or by fax to 2968 4127. We will provide contact details of the relevant credit reference agency. |
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| What is a monthly flat rate? |
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| A monthly flat rate is one of the methods to calculate the monthly repayment amount for a loan. Most banks and financial institutions adopt this method to provide a fixed monthly repayment, as illustrated below: |
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| Principal |
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= Loan Amount + Handling Fee |
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| Handling fee |
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= Loan Amount x Handling Fee %
x Repayment Term (Year) |
| Interest |
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= Principal x Monthly Flat Rate
x Repayment Term (Month) |
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| Monthly Repayment |
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= (Principal + Interest)
/ Repayment (Month) |
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| What is an annualized percentage rate (APR)? |
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| The annualized percentage rate is an index of borrowing cost and is calculated on the basis of 365 days or 366 days a year, including interest and all related fees/charges, in accordance with the relevant guidelines of the Code of Banking Practice. APR is used as a way for customers to compare interest rates.
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| What other costs are involved in borrowing money? |
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| Handling fee - This is a fee charged by banks or financial institutions for processing a loan, usually on an annual basis. |
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| Early repayment charge - If a customer decides to settle a loan earlier than agreed in the contract, an extra fee will be imposed to compensate for the interest lost by the bank or financial institution. |
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| Late repayment charge - If a customer's monthly repayment is overdue, additional interest at a fixed rate or prevailing rate on a daily basis will be charged accordingly. |
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| What is a Personal Installment Loan? |
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| A Personal Installment Loan allows a customer to repay the whole loan principal with interest by an equal fixed monthly amount within a fixed repayment period. Citibank offers two types of fixed Personal Installment Loans. A "Card Debt Consolidation Loan" consolidates all outstanding balances of a customer's credit cards and other unsecured loan accounts (except mortgage account) while the loan amount will be used to directly settle the balances of the aforesaid credit cards or unsecured loan accounts. "Speedy Cash" is a loan that can be used for various purposes. It is disbursed in the form of cash, check or credit to a customer's designated bank account.
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| What is a Revolving Loan? |
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| A Revolving Loan provides a customer with a standby revolving credit line. Customers can withdraw the loan from the standby credit line anytime they wish; there is no fixed monthly repayment amount or repayment period. Customers can choose to repay only the minimum balance as stated on the statement or the full outstanding balance. Interest will only be charged on the withdrawal amount and the credit limit will resume right after repayment. No re-application is required, providing higher flexibility.
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| What is the difference between a Personal Installment Loan and a Revolving Loan? |
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| A Personal Installment Loan allows customers to repay the whole loan amount in a regular monthly amount within a fixed repayment period, enabling customers to better manage their finances. There are three common ways for Personal Installment Loan disbursement: issuing a check payable to the customer; crediting a customer's designated bank account; or arranging direct payments to settle the outstanding balances of the customer's credit cards or other loan accounts.
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| A Revolving Loan provides customers with a standby revolving credit line. Customers can withdraw the loan from the standby credit line anytime they wish. The credit limit will resume right after repayment. No reapplication is required, providing higher flexibility.
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| When should I apply for a Card Debt Consolidation Loan? |
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| Generally, your monthly debt expenses should not exceed half of your total monthly income. If you find that over half of your monthly income is going towards card debt repayment; or if you can only afford the credit card minimum payments after setting aside your daily living expenses; or even if you repay your card debts on a regular and timely basis, and you your outstanding balances remain the same or even get higher; then you may need a Card Debt Consolidation Loan to help clear all your card debts at once.
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| Citibank can provide a Card Debt Consolidation Loan up to 21 times your monthly salary or $500,000 (whichever is lower), with loan repayment term ranging from 12 to 60 months to significantly reduce interest expenses. Your monthly repayment is halved to make it easier to clear your debts. The final approved loan amount and loan tenor are subject to change in accordance with the circumstances of individual cases. Please contact Citibank for details.
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| What are the benefits to clear all credit card debts with a Card Debt Consolidation Loan? |
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| If you can only afford to pay the monthly minimum repayment or you don't have enough cash to settle all your credit card outstanding balances, allowing the card debts to roll on, your interest expenses would be enormous. By consolidating all your debts with a Card Debt Consolidation Loan, you can clear all your debts at a fixed repayment amount within your desired period. You will not only reduce your interest expenses, you can even shorten your repayment term and ease your burden. Normally, a Card Debt Consolidation Loan is offered at a personalized interest rate according to an individual customer's credit score, financial status, income and occupation. You can enjoy a more preferential rate with a better credit profile even if you only request a small loan.
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| Are "Income Proof Waiver" loans and "0% Interest Rate" loans better? |
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| The loan amount offered by "Income Proof Waiver" loan providers generally are at ten to thirty thousand dollars only, which may not be able to help you meet your financial obligations.
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| For loans offering "0% Interest Rate", the banks and financial institutions may charge Administration Fees or Handling Fees that may end up amounting to the same as normal interest expenses. Be sure to check any loan's detailed terms and conditions carefully and don't be mislead by deceptive practices.
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| The application process for a loan requiring income proof is simple and quick. Citibank provides you with reliable lending solutions that include a personalized financial analysis and accepts all types of income proof.
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| What is the difference between a financial institution holding "Money Lender License" and "Bank License"? |
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| An institution holding a "Bank License" is required to operate under the monitoring and supervision of the Hong Kong Monetary Authority, and offer peace-of-mind to customers.
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| Citibank provide you reliable lending solutions with clear terms and no hidden charges under the supervision of the Hong Kong Monetary Authority.
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| Personal Loan |
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| What is the minimum application requirement for a Citibank personal loan? |
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| Applicants must be Hong Kong permanent residents aged 18 or above, holding full-time employment with their present employer for at least 3 months with a monthly income of HK$6,000 or above. |
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| What are the steps to apply for a loan? |
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| Step 1: Choose your loan product |
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| Select a suitable loan product that best fits your financial needs. |
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| Step 2: Application and assessment |
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| Fill in the application form and submit it together with the required documents. We will evaluate your financial position and assess your repayment ability accordingly. |
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| Step 3: Loan approval result |
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| Our Banking Officer will contact you regarding the loan approval result within 1 to 2 working days upon receipt of all required documents. If a loan is approved, we will invite you to visit a designated branch to go through the loan disbursement process. |
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| Step 4: Loan disbursement |
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| After signing the drawdown letter, we will arrange direct payments to settle your credit card outstanding balances and loans from other financial institutions (only applicable to Card Debt Consolidation Loan) and/or disburse your approved loan amount by cash, check or credit into your designated bank account. |
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| Step 5: Repayment |
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| To make repayment easier and avoid any charges caused by late repayment, we will help you set up a direct debit authorization; your loan repayments will be debited directly from your designated bank account on a monthly basis. |
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| How long does it take to approve and disburse a loan at Citibank? |
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| Generally, when a customer applies for a loan online, via the application hotline or in person at a Citibank branch, and upon submission of all required documents, your application will be assessed immediately and the approval result will be available within 1 to 2 working days. If approved, our Banking Officer will invite you to visit a designated branch during normal opening hours for loan disbursement. |
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| How can I apply for a Citibank personal loan? |
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| You can apply for a Citibank personal loan through the Citibank website, by calling the Application Hotline 2962 7077 or visiting a Citibank branch in person.
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| What documents are required for a loan application? |
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| Generally, you should provide the following documents to support your loan application: |
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- Hong Kong Permanent Resident Identity Card
- Income proof, e.g. latest month's payroll slip, latest salary tax demand note, latest MPF contribution proof or latest three months' payroll account bank statement/account passbook (with first page showing your name and account number)
- Latest three months' full set of main bank statement/account passbook (with first page showing your name and account number)
- Latest residential address proof (e.g. electricity bill or bank statement)
- Any other documents or certificates deemed appropriate
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| Can I present my payroll slip as my income proof? |
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| Yes. But please make sure your payroll slip has your company chop or is printed on your company letterhead. If your monthly salary is on a commission basis, please provide a bank statement or account passbook with at least three months' salary deposit record. If you are a taxi driver, you can simply present your taxi rental receipt, driver's license and relevant income proof.
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| What personal information will Citibank obtain from a credit reference agency? |
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| Generally, Citibank will check with a credit reference agency to collect a customer's credit report including credit account information, account delinquency data, recent credit enquiries and historical data.
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| Will Citibank disclose my application to my family and friends? |
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| No. Every applicant's personal data will be kept strictly confidential according to our Personal Data (Privacy) Policy Statement.
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| What is the monthly flat rate of a Citibank personal loan? |
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| We offer personalized interest rates according to an individual customer's credit record. After application submission, you will be contacted by our Banking Officer within 1 to 2 working days with a preliminary approval result, initial loan interest rate offered and other loan details; you can choose to accept the offer or cancel the application without any charge.
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| How will my loan be disbursed? |
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| For "Speedy Cash", we will disburse cash, issue a check payable to you or credit the loan amount to your designated bank account.
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| For "Card Debt Consolidation Loan", we will arrange direct payments to settle your other credit cards' outstanding balances or loans from other financial institutions; for any remaining loan balances, payment will be by cash, check or credit to your designated bank account.
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| Is there any fee for early repayment? |
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| Yes. If you decide to settle your loan earlier than agreed in the contract, you will have to pay an extra fee to compensate for the interest lost by the bank. The fee is subject to change in accordance with the circumstances of individual cases; please contact your principal Citibank branch for further details.
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| Who should I contact for further enquiries? |
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| You are welcome to contact us on our Application Hotline 2962 7077, by visiting any Citibank branch or by browsing our website.
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| Mortgage |
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| What are the steps to apply for a mortgage? |
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| Complete a mortgage application form and submit required documents to the bank (please refer to Question 2 for details). |
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| Upon receiving your application, the bank will first arrange for a valuation of the property you intend to purchase. We will then prepare your mortgage terms by assessing the valuation result and your repayment ability. |
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| If your mortgage is approved, the bank will proceed with the following: |
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- Arrange to sign confirmation letter with mortgage
- Send instruction letter to corresponding solicitor firm to prepare mortgage deeds
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| After signing necessary contracts, the solicitor firm will notify the bank. The bank will then pass the mortgaged amount to the seller's solicitor firm to complete the transaction. |
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| The bank will provide a copy of the repayment schedule to the customer. A repayment schedule should include loan details such as monthly installment, interest and outstanding balance. |
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| What documents are required for a mortgage application? |
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| The following are examples of documents required by the bank for a mortgage application: |
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| If applying in the name of an individual |
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- HKID or passport of borrower and guarantor (if applicable)
- Temporary Sales Agreement (for new purchase)
- Latest repayment schedule or latest 3 months' mortgage repayment record (for refinance)
- Latest 3 months' payroll record shown on bank passbook or statement
- Latest tax demand note/ latest tax return / employment letter
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| If applying in the name of a shell company* |
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- HKID or passport of personally guaranteed shareholder
- Temporary Sales Agreement (for new purchase)
- Latest repayment schedule or latest 3 months' mortgage repayment record (for refinance)
- Business Registration / Certificate of Incorporate
- List of Directors / Records documenting the transfer of shares
- Documents showing share distribution
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| *Applications in the name of a shell company are not accepted under the Mortgage Insurance Program. |
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| Remarks: The documents listed above are for reference only. Citibank has the right to request additional documents depending on the information provided by each application. Please contact Citibank for details. |
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| How do I apply for a refinancing mortgage? |
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| For the most part, there is no difference between applying for a regular mortgage and a refinancing mortgage. The only difference is customers are required to pay off the outstanding balance of their current mortgage. For details on refinancing, please call our Mortgage Hotline 2962 8022 within office hours.
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| What are mortgage interest rates based upon? |
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| In Hong Kong, most home mortgages are either based on the Hong Kong Dollar Prime Rate (P) or Hong Kong Interbank Offered Rate (HIBOR).
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| What is the highest acceptable loan-to-value ratio? |
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| A conventional mortgage will allow up to 70% of the property's value. To borrow up to 90% of the property's value, customer can apply for the Mortgage Insurance Program.
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| What are the fees and charges involved in purchasing a property? |
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| Other than the down payment, the purchaser may also have to pay for the stamp duty of the transaction, solicitor's fee, agent commission, and other similar fees.
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| How much stamp duty do I have to pay? |
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| The stamp duty on the sale or transfer of property in Hong Kong is charged at rates that vary with the value of the property. With effect from April 1, 2010, stamp duty on sale of immovable property in Hong Kong is charged at rates which vary with the amount or value of the consideration as follows:
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| (Where the stamp duty calculated includes a fraction of $1, round-up the duty to the nearest $1)
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| Amount of value of the consideration |
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Rate (HKD) |
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HKD2,000,000 |
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HKD100 |
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HKD2,000,000 |
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HKD2,351,760 |
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HKD100+10% of excess over HKD2,000,000 |
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HKD2,351,760 |
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HKD3,000,000 |
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1.5% |
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HKD3,000,000 |
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HKD3,290,320 |
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HKD45,000+10% of excess over HKD3,000,000
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HKD3,290,320 |
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HKD4,000,000 |
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2.25% |
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HKD4,000,000 |
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HKD4,428,570 |
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HKD90,000+10% of excess over HKD4,000,000 |
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HKD4,428,570 |
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HKD6,000,000 |
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3.00% |
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HKD6,000,000 |
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HKD6,720,000 |
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HKD180,000+10% of excess over HKD6,000,000 |
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HKD6,720,000 |
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HKD20,000,000 |
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3.75% |
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HKD20,000,00 |
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HKD21,739,120 |
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HKD750,000 + 10% of excess over HKD20,000,000 |
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HKD21,793,120 |
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4.25% |
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| Remarks: The rate table above is for reference only. Please refer to the Hong Kong Government's published rates for the most up-to-date information.
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| What should I do if I have further inquiries? |
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| You can call our Mortgage Hotline at 2962 8022, visit any Citibank branch or browse this website for more information.
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| Still have questions? |
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| Contact us at (852) 2962 7077 for Loans, (852) 2962 8022 for Mortgages
or (852) 8128 8028 for Ready Credit#. |
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| Remarks |
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| #Application Hotlines service hours: Monday to Friday 9:00am - 7:00pm. |
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