Property Refinancing

Property Refinancing brings you financial flexibility

You can obtain more liquidity and financial flexibility from property refinancing in Hang Seng that allowing you to grasp market opportunities and meet your different financial needs (such as Children’s study abroad funds, Debt settlement… etc) whether your property is mortgaged or not.

Below is a case sharing of Refinancing (For reference only)

Mr. Chan would like to cash out extra funds from existing mortgaged property for financial flexibility.

Current property value: HK$5,500,000
Outstanding mortgage loan balance: HK$1,000,000

Available cash out amount: HK$2,300,000

1) Funds for purchasing overseas property: HK$1,800,000
2)Standby cash for financial flexibility: HK$500,000 (e.g. for children education, home decoration, etc.)
  • The maximum cash out amount is the maximum loan amount minus the outstanding mortgage loan balance. If the loan-to-value ratio is 70% for the refinancing, the maximum loan amount is HKD5,950,000 (Current property value (The value of the property is the market price or valuation, whichever is lower) X 70%). The maximum loan-to-value ratio for self-use residential properties with value below HKD15,000,000 is 70%. The mortgage loan terms and loan amount are subject to Hong Kong Monetary Authority’s new guidelines for property mortgage loans and final approval of Hang Seng Bank Limited (“Hang Seng”).
Flexible Repayment Option

Other than the monthly fixed instalment repayment option, you can also choose other repayment plans which suit your financial needs.

Useful Tools

To borrow or not to borrow? Borrow only if you can repay!