Advice Centre
Frequently Asked Questions
Residential Mortgage & Personal Loans
For residential mortgages, there are products without prepayment penalties before the term maturity. Customers can receive a detailed explanation by visiting a branch.
Shinhan Bank Canada provides monthly or bi -weekly repayment options. Customers may choose any of the available options according to their needs.
Overdraft is an attached loan amount on your chequing account so you can access the revolving amount whenever it is needed. Loan limits need to be applied with credit applications. It is often called “HELOC” from other institutions for secured overdrafts.
We provide Stand-by L/C loan products for customers wishing to receive a loan using assets in Korea as collaterals. Customers can receive a detailed explanation by visiting a branch.
When you apply for a mortgage/loan by pledging a collateral, we perform an appraisal for the unbiased valuation of the collateral. This appraisal is a key factor in determining the amount of the mortgage/loan.
No. The Bank outsources the appraisal process to professionals who are able to perform the task without bias and under strict standards. Appraisal requests shall be distinguished between commercial properties and residential properties.
Loan amounts are not decided solely by real estate valuations, similar to how individual credit ratings are not the only determining factor for the loan approval process. The applicant’s credit history, transaction history, and other relevant factors shall be analyzed to determine the amount of the loan. However, due to the characteristics of residential mortgages, we limit the loan amount to a maximum of 80% of property values and 70% for commercial property values.
Commercial Mortgage & Loans
Shinhan Bank Canada provides commercial mortgages/ loans tailored to each customer to purchase real estate property or to use his/her property to receive a loan. Commercial mortgages are to assist with purchase of property, financing of property, property improvement.
What real estate assets are eligible for commercial mortgages?
The following types of real estate are eligible for commercial mortgages:
– Apartment of more than 4 units
– Office
– Mixed-Use (Retail & residential) buildings
– Retail spaces, strip malls and shopping centers
– Hotel/motel and other accommodation facilities
– Storage and other industrial buildings
– Gas stations, car wash and other special purpose real estates
Business loans are not only for the purchase of businesses but also be issued to help with finance management, expansion of the original business, purchase of inventory, and various other needs.
Business loan repayment terms depend on the size of the business and the type of collateral. Shinhan Bank Canada typically allows for up to 5 years for repayment of credit-based loans, and up to 25 years for repayment of collateral-based loans.
Business loan and commercial mortgage interest rates are mainly based on the Bank’s Prime Rate and vary depending on the size of the loan, size of the business, repayment period, type of collateral, and other factors. Please visit a branch for more detailed information.
CSBFP is a Canadian government program that aims to help small businesses by making it easier to get loans from financial institutions. The maximum loan amount is $1 million, of which up to $350,000 can be used to finance equipment and leasehold improvements. Repayment periods can be up to 15 years for purchase of land or buildings, or up to 10 years for leasehold improvements and equipment. Please visit a branch or contact Innovation, Science and Economic Development Canada for more detailed information.
Businesses in Canada with gross revenues of $10 million or less are eligible. Such businesses can be corporations, sole proprietors, partnerships or cooperatives. Non-profit organizations, agricultural businesses, or investment-based businesses are not eligible for CSBFP. Please visit our branch for more detailed information.