DBS vs BOC mortgage

Hi, I am applying for a loan and am down to two banks, DBS and Band of China. The difference in the two deals seems to be the same, so the only differentiating factor may be the service and integrity of these two banks is like.


I have a long-standing relationship with DBS in Singapore, but have never dealt with them here. I have no experience with BOC and worry that as an English-speaking foreigner, even simple matters like easy communication in English via their phone banking going forward might be an issue.


Any comments on experiences with these two banks' mortgage services will be appreciated.


Lastly, is it ok to apply for both then decide on which to use if and when they approve the loan?


Thanks

You can submit mortgage application first, and make decision after getting the approval. But once sign the offer letter, you must take it.


Regarding their services, there is really no big difference.

dizzyhytes, I have used both banks over the last few years. Re your second paragraph, you are absolutely right. Hence I terminated all my BOC credit cards recently and use DBS credit cards (Black Card gives the best rewards) and DBS mortgage services. I also have a long-standing relationship with DBS in Singapore and am from Singapore.


Another important deciding factor is that if your mortgage loan is large enough, DBS can upgrade you to a Treasures Priority Customer. HSBC and BOC will not do that because their definition of Total Relationship Balance does not include mortgages.


If you cannot speak Cantonese, HSBC, DBS and Citibank are preferred. Avoid BOC, Hang Seng, Wing Hang or ICBC. BOC Phone Banking could be an issue, I experienced a situation where the customer service officer sounded irritated when forced to speak English as he or she could not define certain financial or legal terms. I had a difficulty with DBS before but I complained and they immediately referred me to a superior who apologised and spoke good English.

Both DBS and BOC are very reputable retail lenders while established here in Hong Kong. The difference, as in most relationships, is understanding exactly the offers that have been provided. For example, do both offers have the ability for you to repay the loan without penalty should you wish to? Or, alternatively do they have a minimum period of time within which there would be a penalty for early repayment? Do either of the lenders consider multi-currency lending (i.e. you could take the view that the Japanese Yen is a currency ready to weaken and therefore by borrowing in this currency, you can effectively have the loan for low or negative interest).


You should also compare the formulas for determination of interest rates ongoing and the policy of the bank as to increasing your interest rate depending upon increase in the overall prime rates. This is no longer always the case in that fixed mortgages are also available in some circumstances (fixed mortgages are a result of an agreement between the borrower and the lender whereunder the interest rate is agreed to remain frozen over a specific period regardless of variations and external interest rates).


Weir & Associates are approved solicitors that can act on your behalf regarding over 50 financial institutions in Hong Kong including both DBS and BOC to prepare mortgage documentation.



Weir & Associates

Solicitors & Notaries

16th Floor Tak Shing House

Theatre Lane

20 Des Voeux Road Central

Central

Hong Kong

Tel : 2526-1767

Fax : 2868-3568

email : WeirLaw@HongKongLaw.com

www.HongKongLaw.com/weirlaw

I second that opinion about BOC.


Very unhappy with phone-banking, internet banking, even going into the branch for customer service. Of course, that may depend which branch you go to... but yes, not very easy for english speakers...

Hi, I have a mortgage with DBS and the service to get the mortgage was pretty much in line with that at other banks, they did however give a really good deal. I use HSBC for my day to day banking so I have not had to deal with them apart from the mortgage.


My mortgage with DBS is now up for renewal and I have been shopping around. I have come back to DBS and I have found DBS flexible enough to negotiate, so make sure you bargain with conditions of the mortgage (penalty periods, partial payments etc), although I have found Standard chartered have offered no penalties after 6 months on their HIBOR mortgage whereas DBS wont budge on any less than a year....


When I brought my first place I went around to about 5 banks and put applications in all of them, and then I played banks off each other to get the best deal. For my second place, I used a local broker who did all this for me. She was a bank manager previously, so she knows all the ins and outs or mortgage application. I had already posted her details on this forum under 'mortgage broker' so have a search, PM me if you want her details and cant find them on the search function, but it sounds as though you have already done the hard work. Brokers will charge the bank for their services.


good luck with the mortgage!


Associates; from your above message, I take it you are also a mortgage broker? If so, what are your charges for arranging mortgages for buy to let investment property in the UK and the US?

Thanks to everyone who's responded to me. It's helped me a lot. I've decided to include another bank or two in my applications just to give me a few more choices (assuming they all approve me!)


Kiwimoa, I spoke with Standard Chartered but this time their offer wasn't better than DBS and BOC so I decided not to consider them.


Thanks!

HSBC, Prime minus 3, 1% cash rebate. Can't go wrong if you plan to hold the property for the long term. Also, the HSBC Prime Rate is always the lowest in town - not so long ago HSBC Prime rate was 5% and ever other banks' was 5.25%.