Straight2Bank
Example
Suppose you would like to borrow a loan amount of HKD4,000,000
| Mortgage loan amount | HKD4,000,000 |
| Mortgage loan tenor | 20 years |
| Mortgage loan interest rate | 3.25% p.a. |
| Initial deposit | HKD120,000 |
| Monthly savings | HKD1,500 |
| MORTGAGE $AVER | YOUR CURRENT CONVENTIONAL MORTGAGE PLAN |
|---|---|---|
| (a) Original mortgage loan interest expenses | HKD1,444,820 | HKD1,444,820 |
| (b) Deposit interest earned | HKD168,603 (Deposit annual interest rate equals your existing mortgage loan interest rate) | HKD60 (Based on HKD deposit interest rate of 0.001% p.a.) |
| (c) Mortgage interest expenses saved as a result of reducing the mortgage loan outstanding principal with deposit interest accrued from savings | HKD26,619 | NIL |
| Net interest expenses (a-b-c) | HKD1,249,598 (Save 14%) | HKD1,444,760 |
The above example is based on the assumptions below and is for reference only.
- Assuming that you:
– Deposit HKD120,000 on the date when setting up Mortgage $aver AND
– Deposit HKD1,500 into the Mortgage $aver Current Account on a monthly basis AND
– No withdrawal is made during the entire mortgage loan tenor AND
– Repay monthly instalment on schedule according to the Bank’s calculation - The above example does not take into account any fees (including arrangement fee, annual fee, and other charges (if any)) in the calculation.
Related Mortgage Services
Mortgage $aver
To borrow or not to borrow? Borrow only if you can repay!
