*Assume withdrawing the total amount of savings in IPS HKD Savings Account and IPS RMB Savings Account at instalment no. of and converting RMB savings amount to HKD using as exchange rate.
^ Effective interest rate for whole mortgage tenor and estimated figures for reference only. Calculated on the basis of net mortgage interest expenses by deducting HKD and CNY savings interest returns from mortgage interest expenses and assume General Savings Interest Rate, Mortgage Interest Rate and RMB Exchange Rate remain unchanged for the whole mortgage tenor.
The above-mentioned loan terms, interest rate and calculation are for reference only. The actual loan terms and savings interest rate will be specified in the Letter of Offer to be signed by the customer.
Interest is calculated on a day-to-day basis and assumes repayment starts from January 1st.
Terms and Conditions for Hang Seng RMB/HKD Mortgage-Link Account:
Preferential savings interest rate is only applicable to the Hong Kong Dollar ("HKD") Savings Account and Renminbi ("RMB") Savings Account of the Integrated Account designated by Customer. Customer must designate the said designated HKD Savings Account of Integrated Account as the direct debit account for repayment under the RMB/HKD Mortgage-Link scheme during the entire tenor period of his/her mortgage loan. Customer is only entitled to enjoy the preferential savings interest rate starting from the date of successful drawdown of the mortgage loan. The total deposit amount applicable for the preferential savings interest rate is limited to a maximum of 50% of the outstanding principal of the mortgage loan ("Available Threshold"), under which the maximum deposit amount of RMB and HKD applicable for the preferential savings rate would each be capped at 25% (HKD equivalent) of the outstanding principal of the mortgage loan. The Available Threshold is subject to adjustment according to the outstanding principal of the mortgage loan. Deposit exceeding the Available Threshold is subject to a Tier Savings Deposit Rate as quoted by Hang Seng Bank Limited ("the Bank") from time to time according to the total credit balance of the Integrated Account's HKD Savings Account and RMB Savings Account respectively.
The maximum deposit amount of RMB applicable for the preferential savings rate would be calculated based on the daily outstanding principal of the mortgage loan (in HKD) at such RMB take-over rate as quoted by the Bank from time to time.
The respective percentage of the outstanding principal of the mortgage loan allocated to RMB and HKD deposit under the Available Threshold (The existing respective percentage is 25%/25% of the outstanding principal of the mortgage loan) is subject to periodic review which may depend on but is not limited to market changes and value of the currencies. The Bank shall have the absolute discretion to adjust the respective percentage of the outstanding principal of the mortgage loan allocated to RMB and HKD under the Available Threshold.
Subject to periodic review, the Bank shall have the absolute discretion to raise or reduce the preferential savings interest rate applicable under the RMB/HKD Mortgage-Link scheme.
In any of the following event, preferential savings interest rate shall cease to be applicable to the credit balance of the designated HKD Savings Account and RMB Savings Account:
for credit balance exceeding the Available Threshold;
where the customer defaults in the payment of any sums due to the Bank under the mortgage loan, during the period of default;
the designation by the customer of the designated HKD Savings Account for repayment of mortgage loan is terminated or revoked; or
the mortgage loan is fully repaid.
The Bank reserves the rights to revise, amend or modify these terms and conditions from time to time without prior notice. In case of any disputes, the decision of the Bank shall be final.
Renminbi ("RMB") is subject to exchange rate risk. Fluctuation in the exchange rate of RMB may result in losses in the event that the customer subsequently converts RMB into another currency (including Hong Kong Dollars). Exchange controls imposed by the relevant authorities may also adversely affect the applicable exchange rate. RMB is currently not freely convertible and conversion of RMB through banks in Hong Kong, like other Renminbi services provided by banks in Hong Kong, are subject to certain policy, regulatory requirements and/or restrictions (which are subject to changes from time to time without notice). For example, for a personal customer, conversion to/from RMB through banks in Hong Kong is currently subject to a daily limit. Customers should be aware of the time required for conversion of RMB from/to another currency of an amount exceeding the daily limit. The actual conversion arrangement will depend on the policy, regulatory requirements and/or restrictions prevailing at the relevant time.