LENDING & CREDIT | Cesar Tordesillas, Hong Kong

BEA launches plan for property buyers

A new mortgage plan that enables property buyers to enjoy first-year monthly installments of as low as US$430 was launched by the Bank of East Asia.Installments during the first year include an interest subsidy while installments from the second year onwards are based on a mortgage rate of 2.25 percent per annum. The loan-to-value ratio is up to 95 percent and the loan tenor is up to 30 years. The plan, which is available until 15th May 2009, has been tailored exclusively for buyers of property at Central Park Towers II, a housing estate developed by Cheung Kong Holdings Limited.The plan is based on an assumed loan amount of US$129,025 with a loan tenor of 30 years. The mortgage plan offers customers a privileged mortgage rate of 2.5 percent per annum for the first year and an interest subsidy of 0.833 percent on the loan amount in the first year. The first-year monthly installment can be as low as US$430, once the interest subsidy is factored in. The monthly installment will be raised proportionally if the loan amount is higher than US$129,025.Customers can enjoy savings of more than 19 percent in the first year when compared to floating rate mortgage plans offered in the market."The plan will help lessen the financial burden of new Central Park Towers II property owners, especially those who are first-time Home buyers with relatively tight budgets," said Mr. Kenneth Tsin Wai-lun, Head of BEA’s Property Loans Department.

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