Straight2Bank
Mortgage $aver
Standard Chartered Mortgage $aver is a home loan solution that interest earned from deposit offsets the outstanding balance of mortgage to help you pay off your mortgage earlier.
Example
Suppose you would like to borrow a loan amount of HK$4,000,000
| Mortgage loan amount | HK$4,000,000 |
| Mortgage loan tenor | 20 years |
| Mortgage loan interest rate | 3.25% p.a. |
| Initial deposit | HK$120,000 |
| Monthly savings | HK$1,500 |
MORTGAGE $AVER
| YOUR CURRENT CONVENTIONAL MORTGAGE PLAN
| |
|---|---|---|
| (a) Original mortgage loan interest expenses | HK$1,444,820 | HK$1,444,820 |
| (b) Deposit interest earned | HK$168,603 (Deposit annual interest rate equals your existing mortgage loan interest rate) | HK$60 (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 | HK$26,619 | NIL |
| Net interest expenses (a-b-c) | HK$1,249,598 (Save 14%) | HK$1,444,760 |
The above example is based on the assumptions below and is for reference only.
- Assuming that you:
– Deposit HK$120,000 on the date when setting up Mortgage $aver AND
– Deposit HK$1,500 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.
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To borrow or not to borrow? Borrow only if you can repay!
