FAQ

What is a Fixed-Rate Mortgage?
Fixed rate refers to the fact that the interest rate remains the same over the term of the mortgage. This is in contrast to other types of mortgages like “variable rate mortgage” in which the interest rate may change. If customers have a set budget and want to have a predictable payment from month to month, then a fixed-rate mortgage might work well for you.
 
What is a Variable rate mortgage?
A variable rate mortgage will fluctuate with the Prime rate throughout the mortgage term. While regular payment will remain constant, interest rate may change based on market conditions. This impacts the amount of principal customers pay off each month. When rates on variable interest rate mortgages decrease, more of regular payment is applied to principal. Additionally if rates increase, more of payment will go toward the interest.
 
What is an Open Mortgage?
The whole or any part of the principal amount of the mortgage loan may be prepaid at any time without notice or bonus interest. All accrued interest owing up to and including the date of prepayment must be paid at the time of such principal prepayment.
 
What is a closed mortgage?
When not in default, and after having exercised the prepayment options described below, the mortgage loan may be prepaid at any time during the term upon payment of 3 months' bonus interest at the contracted interest rate, or the interest differential, whichever is higher.
 
Difference between Long-term mortgages and short-term mortgages?
Short-term mortgage usually refer to the mortgage with the six months or one year term contract, long-term mortgage means the contract term usually more than five years.
 
What is a prepayment charge?
If you decide to pay off your outstanding balance before your term's maturity date, (or even an amount greater than your allowable prepayment privileges), you may have to pay a prepayment charge.
 
How to use "15 + 15" Prepayment and Increasing Payment Option:
- In addition to making the scheduled repayments, the borrower may, when not in default, thrice during a 12-month period (from anniversary date to anniversary date of the interest adjustment date) on a scheduled repayment date, prepay up to a cumulative amount of 15% of the original principal amount of the mortgage without notice or bonus interest. Such prepaid amounts are applied to the principal only and will not affect the monthly payment amounts. The minimum amount of such prepayment is CAD5,000.
- Once during a 12-month period (from anniversary date to anniversary date of the interest adjustment date), the borrower may, on written notice increase the regular payments of the principal and interest payable under the mortgage by up to 15%.
 
What is a Amortization?
Amortization is a term for the number of years that customers take to fully pay off mortgage (not the same as mortgage term). Our Bank offers up to 25-year amortization period for conventional mortgage loans.
 
How prepayment charges are calculated:
- For fixed interest rate:

The prepayment charge is the greater of either: three months' interest, or an Interest Rate Differential (IRD) amount, equivalent to the difference in the interest payable on your existing mortgage versus that payable on a replacement mortgage, calculated on the time remaining in your existing mortgage term. The interest rate for the replacement mortgage in this calculation is today’s rate of a mortgage that is closest to the remainder of your term.
 
- For variable interest rate:
The prepayment charge is three months’ interest cost on the amount you want to pay, calculated at the interest rate applicable to your mortgage when you make the prepayment.
 
How to estimate Three Months' Interest (90 days)
Step 1: ________ (A) The amount you want to prepay
Step 2: ________ (B) Your current annual interest rate expressed as a decimal (for example, 6.75% = .0675)
Step 3: ________ (C) A x B = C
Step 4: ________ (D) C ÷ 4 = D
D = Your estimated three months' interest amount
 
How to estimate the Interest Rate Differential Amount
Step 1: ________ (A) Your current annual interest rate expressed as a decimal (for example, 6.75% = .0675)
Step 2: ________ (B) The posted interest rate for a Similar Mortgage, less any rate discount received by you under the Mortgage
Step 3: ________ (C) A - B = C, which is the difference between your current annual interest rate and the interest rate in B above (write C as a decimal)
Step 4: ________ (D) The amount you want to prepay
Step 5: ________ (E) The number of months remaining on the term of your Current Mortgage
Step 6: ________ (F) C x D x E) ÷ 12 = F
F = Your estimated Interest Rate Differential amount

Please be advised that estimated cost of prepayment provided above will be different with the exact cost of prepayment due to the customer’s specific situation and actual formula employed.

For more information about mortgage prepayment, you can refer to the Website of FCAC:http://www.fcac-acfc.gc.ca/eng/consumers/mortgages/index-eng.asp
 
 

Account Opening Witness Services (AOWS)

When can I wire money to my account after applying for AOWS? Is there any wiring limit? When will the funds arrive?
The Bank will send you an account opening confirmation letter after three business days for your verification. You can start wiring funds to your account after confirming the information. Generally speaking, all funds will arrive in the next business day. Please refer to the standard guideline issued by State Administration of Foreign Exchange (SAFE) for annual remittance limit.
  
Can I use online banking and telephone banking immediately after opening the account?
No. Due to local banking regulations, the newly opened bank account is inactive. At this point, it is temporarily unable to carry out electronic services such as online banking. However, you are allowed to wire money into the account. You can activate the account and enjoy full services by showing your passport and confirmation documents upon arrival
 
Are there any services charges for AOWS?
The Bank will not charge any service fees, while witness agency may apply service charges. For all rates and fees related to our Personal Banking products, please refer to "Rates & Fees"
 
Are there any differences between the account opened in Mainland China and the one opened in Canada?
No.
 
Where can I use my Global Debit card?
1.     You can access all ATMs and POS in Canada
2.     You are able to complete account enquiry, cash withdrawal, and PIN change on any of the Bank’s ATMs and 2300 Exchange network ATMs (including HSBC, National Bank, and other well-known local banks) without any convenience fees.
3.     You can withdraw cash from any ATMs in Mainland China (except PIN change, money transfer, or deposit) .
4.     You can access any POS with UnionPay logo (or UnionPay alliance card agent) across the world.
 
What other services can the Bank provide other than day-to-day saving account?
 
In addition to offering traditional deposit and settlement services to meet your daily financial needs, we also provide you with a wide range of financial services, such as foreign exchange, loans, trade finance, and high interest CAD/USD/RMB term deposits to help you in achieving different financial goals.
 
What if there weren't any branches close to me?
The Bank offers online banking, telephone banking, mobile banking, and other diversified electronic services to assist you in managing your account wherever and whenever you see convenient without visiting the branch. In addition, you can access 2300 Exchange® ATMs across Canada to manage your account, such as account enquiry, cash withdrawal, and PIN changes.
 
How do I contact the Bank?
If you are currently living in China, call our Customer Service Hot Line in China at 95588, and choose 9 to speak to a representative for further information. If you are living in Canada, call 24*7 Customer Hotline at 1-877-779-5588.
 

Student GIC Program

When can I wire money to my account after applying for AOWS? Is there any wiring limit? When will the funds arrive?
The Bank will send you an account opening confirmation letter after three business days for your verification. You can start wiring funds to your account after confirming the information. Generally speaking, all funds will arrive in the next business day. Please refer to the standard guideline issued by State Administration of Foreign Exchange (SAFE) for annual remittance limit.
 
Can I use online banking and telephone banking immediately after opening the account?
No. Due to local banking regulations, the newly opened bank account is inactive. At this point, it is temporarily unable to carry out electronic services such as online banking. However, you are allowed to wire money into the account. You can activate the account and enjoy full services by showing your passport and confirmation documents upon arrival
 
Can I wire more than $10,000 CAD into the GIC account
You are allowed to wire more than $10,000 CAD, however, only $10,000CAD will be allocated to Student GIC. Any excess amount will be deposited into your personal chequing account
 
Can I change the payment schedule to monthly instead of bi-monthly?
No.
 
When will be the scheduled payment date?
Starting from your account activation date, and every 60 days since after.
 
What is the service charge?
The Bank will collect $100 CAD as your GIC account administration fee. Please click here for detailed personal schedule of charges.
 
When will the $100CAD service fee be charged?
It will be debited from your remittance amount. As such, you are required to wire the service fee along with the $10,000CAD principal. Otherwise, the remittance will be returned to the sender’s account.
 
Do I have to close my account if my application was denied and funds are returned?
Yes.
 
Where should I apply a refund?
You can apply at one of our designated Student GIC branches in China. Please bring your personal ID, passport, and original remittance receipt for verification.
 
Is there any service charges?
Yes, a remittance fee will be charged. Please also be advised that the refund process may take up to 8 weeks.
 
What other services can the Bank provide other than day-to-day saving account?
In addition to offering traditional deposit and settlement services to meet your daily financial needs, we also provide you with a wide range of financial services, such as foreign exchange, loans, trade finance, and high interest CAD/USD/RMB term deposits to help you in achieving different financial goals.
 
What if there weren't any branches close to me?
The Bank offers online banking, telephone banking, mobile banking, and other diversified electronic services to assist you in managing your account wherever and whenever you see convenient without visiting the branch. In addition, you can access 2300 Exchange® ATMs across Canada to manage your account, such as account enquiry, cash withdrawal, and PIN changes.
 
Where can I use my Global Debit card?
1. You can access all ATMs and POS in Canada.  
2. You are able to complete account enquiry, cash withdrawal, and PIN change on any of the Bank’s ATMs and 2300 Exchange network ATMs (including HSBC, National Bank, and other well-known local banks) without any convenience fees.  
3. You can withdraw cash from any ATMs in Mainland China (except PIN change, money transfer, and deposit).  
4. You can access any POS with UnionPay logo (or UnionPay alliance card agent) across the world.  
 
How do I contact the Bank?
If you are currently living in China, call our Customer Service Hot Line in China at 95588, and choose 7, then 0 roaming service, and finally choose 2 to speak to a representative for further information. If you are living in Canada, call 24*7 Customer Hotline at 1-877-779-5588.
 
UnionPay Prepaid Card
What is an ICBK UnionPay Prepaid Card and how di I use it?                                                                           
ICBK UnionPay Prepaid Card is a card that you could pre-load with money and then use it to make purchases anywhere UnionPay is electronically accepted. The account currency is in CNY (¥). The amount of every purchase you make will be automatically deducted from the balance on the card until it is reduced to zero.
 
Why would I choose an ICBK UnionPay Prepaid Card instead of store gift card?
ICBK UnionPay Prepaid Card can be used for purchase anywhere UnionPay is electronically accepted, which offers you lots of choices. The Card is accepted worldwide by over 2.68 million UnionPay merchants among more than 130 countries and cities. Compared to store gift card, ICBK UnionPay Prepaid Card be used at different stores and has no expiry date. You can take your time to search for the best price and shop around to get exactly what you really want.
 
Who can purchase an ICBK UnionPay Prepaid Card?
Anyone who live in Canada reach the age of 18 or 19 or above can purchase an ICBK UnionPay Prepaid Card. (In British Columbia, New Brunswick, Nova Scotia, Newfoundland/Labrador and the Territories, the minimum age is 19. In other provinces, the minimum age is 18. )
 
Can I add more money to the ICBK UnionPay Prepaid Card?
No. The ICBK UnionPay Prepaid Card can only be loaded once at the time of purchase. Cards cannot be reloaded with additional funds.
 
Can ICBK UnionPay Prepaid Card be replaced if lost or stolen?
No. The ICBK UnionPay Prepaid Card is anonymous which is similar to cash. Possession of the ICBK UNIONPAY Prepaid Card is a sufficient proof of ownership. If the ICBK UnionPay Prepaid Card is lost or stolen, the Bank will not issue a replacement card or refund any of the prepaid value.
 
Does the ICBK UnionPay Prepaid Card have an expiry date?
No. There’s no expiry date for the Card. Once the balance of the prepaid value of the Account reduced to zero, the Card will have no value and cannot be reused.
 
Is there a fee to purchase ICBK UnionPay Prepaid Card?
In addition to the initial value loaded on the card, there is a one-time Card Sign-up Fee (see the Disclosure Statement) charged to whom purchasing the card. There is no extra fee charged to the card when you make purchases.
 
Where can I purchase ICBK UnionPay Prepaid Card?
ICBK UnionPay Prepaid Card can be purchased at any ICBK branch in Canada.
 
What denominations are available on ICBK UnionPay Prepaid Card?
ICBK UnionPay Prepaid Card can be purchased in denomination of ¥500, ¥1,000 or ¥5,000 CNY at any ICBK branch in Canada.
 
Are there any other fees associated with my ICBK UnionPay Prepaid Card?
All fees related to your card are provided to you on the Disclosure Statement. We encourage you to carefully read the fees associated with the card and to establish usage patterns that minimize fees associated with card ownership.
 
Is there a PIN for ICBK UnionPay Prepaid Card?
Optional. If you chose an ICBK UnionPay Prepaid Card with PIN, set a PIN upon purchasing at any ICBK branch.
         
Can I receive a statement?
No. You can review your current balance and recent transactions for free by visiting the website www.icbk.ca. There are no mailed statements.
 
How can I check the balance on my ICBK UnionPay Prepaid Card?
Check your balance and transaction history for free by visiting the website www.icbk.ca.
 
To check your balance:
Step 1: Click the button on this page     
Step2: Key in the Information below, and then click “查询”
To check your transaction history:
Step1: Click the button on this page            
Step2: Key in the information below, and then click “查询”  
 
 
 
Can I use my ICBK UnionPay Prepaid Card to obtain Cash Advance transactions on the ATM?
No. Your ICBK UnionPay Prepaid Cardcannot be used to withdraw cash at an ATM or make financial payments at any financial institution, it can only be used to purchase on the POS with the logo of the China UnionPay.
 
What if I want to buy something that costs more than the balance on the ICBK UnionPay Prepaid Card?
If you want to make a purchase for more than the available balance on your card, you must tell the cashier the exact amount to charge to the ICBK UnionPay Prepaid Card first, then use another method of payment-credit card, debit card, cash or cheque- for the remaining purchase amount, this is known as a split payment. (Note: some merchants may not be able to handle multiple forms of payment.) For example, to make a purchase for ¥100 with only ¥60 left on your card, tell the cashier to only charge ¥60 to the card first, and then give the cashier another method of payment to pay for the remaining ¥40. Remember, merchants do not know your card balance and cannot automatically deduct the remaining balance from your card. So if you don’t tell the cashier that you would like to use multiple forms of payment and try to make a purchase for more than the amount on the ICBK UnionPay Prepaid Card, the transaction will be declined.
 
What happens if I need to return something I purchased with my ICBK UnionPay Prepaid Card?
Keep your ICBK UnionPay Prepaid Card safe in case you need to return merchandise for credit. Merchandise return and refund policies vary by merchants. Merchants may credit your ICBK UnionPay Prepaid Card, provide cash refund, or provide a store credit.
 
If a credit is issued to the ICBK UnionPay Prepaid Card, it may take some times (subject to UinonPay system) for the funds to appear on your card balance. Check your balance regularly on the free reporting website to determine whenif your card has been credited for the return.
 
 
Can I use my ICBK UnionPay Prepaid Card for recurring billing?
No, your ICBK UnionPay Prepaid Cardcannot be used for recurring billings or for pre-authorized payments. 
 
How do I dispute a transaction on my ICBK UnionPay Prepaid Card?
Any dispute on the transaction should be directly handled between the merchant and you.
 
My ICBK UnionPay Prepaid Card does not have my name embossed on it – do I need to sign the sales receipt?
While your card may not have your name on it, you will still need to sign the back before using it. When making a purchase you will sign the receipt, and the merchant should compare the signature to the one on the back of the card to further process the payment.
 

Joint Deposit Account

What every older Canadian should know about Powers of Attorney (for financial matters and property) and Joint Bank Accounts?