BEA launches new mortgage program for old flats

May 19, 2009 (China Knowledge) - Bank of East Asia Ltd (BEA)<0023>, the largest independent local bank in Hong Kong, is extending the residential mortgage loan tenor for old flats by up to 10 years, said Kenneth Tsin Wai-lun, head of BEA's property loans department, the Standard reported.

According to Tsin, the program, which is available to both owner-occupiers and investors, covers residential mortgages where the age of the property and the loan tenor add up to 70 years, longer than general programs offering up to 60 years.

The Hong Kong-listed lender has teamed up with mortgage brokerage mReferral and property agent Hong Kong Property Services to launch the mortgage plan.

Tsin said that Hang Seng Bank<0011> and Citibank are also offering similar mortgage programs targeting older flats.

The room for a further cut in mortgage rates is limited, said Tsin, adding it is still possible for banks to lower the rates to about 2% after a recent inflow of hot money into Hong Kong.

The bank planned to buy stake in ICEA Securities, the lender's joint venture with Industrial and Commercial Bank of China (ICBC)<601398><1398>, China Knowledge reported earlier.