Home Ownership Loan

A mortgage is a secured loan in which you agree to give the property as security while a home ownership loan is an unsecured loan in which you don't have to use your home as collateral for the loan. In Hong Kong, many banks and lending companies provide personal loans for property owners such as Bank of China's BOC Express Cash Property Owner Loan, BEA's Property Owner Instalment Loan and Prime Credit's Property Owner Personal Loan.

In general, if you are a tenant of public rental housing or own a Home Ownership Scheme flat or a private domestic property, you can apply for a Home Ownership Loan.

You should check if the lending institution will charge additional fees such as handling fee, appraisal fee, attorney's fees and early repayment fees. Some banks and lending companies offer cash rebate to new customers or applicants who successfully apply online.

The interest rate for a home ownership loan is normally 4% - 18%, depending on your loan amount -- you pay lower interest rates when you borrow more. Some banks and financial institutions also offer low interest rates or interest-free deals for the first few months.

The approval time of a home ownership loan depends on a specific bank or financial institution's usual practices. As a home ownership loan is not limited by monthly salary or income proof like a personal loan, sometimes a home ownership loan can be approved within one hour.