Private Residential Property Mortgage FAQ

1. Mortgage Brokers & Income Verification

Why do many buyers choose mortgage brokers?

Professional mortgage brokers can:

• Compare rates, LTV ratios, and cash rebates across multiple banks at once;
• Recommend banks more likely to approve based on your occupation and income structure;
• Help organize and pre-check income documents to reduce supplementary document requests;
• Sometimes provide additional cash rewards.

What income and account records commonly trigger bank red flags?

Common pitfalls include:

• Large revolving credit facilities—even unused, they're treated as potential debt;
• Frequent betting platform or cryptocurrency exchange transactions in salary accounts;
• Large transfers to help relatives repay finance company loans;
• Monthly credit card payments far exceeding actual monthly income.

2. Pre-sale & Resale Property Practicalities

When is the best time to arrange mortgage for pre-sale property?

General recommendations:

• Reference the "key date" in the preliminary agreement or sales brochure for timeline;
• Start contacting banks or mortgage brokers about 3 months before expected completion;
• If developer delays completion, banks may require updated income documents and credit reports.

Can I get a mortgage if the resale property only has certified copies?

It depends on the situation:

• If due to "residential with parking" split sales leaving only certified copies, but lawyers can trace the title origin, banks generally still accept;
• For genuine missing deed cases, bank approval becomes very conservative or may be declined entirely.

3. Guarantors, Stamp Duty & Call Loans

How does being a guarantor affect my future property purchase?

After becoming someone's mortgage guarantor:

• The full mortgage payment is counted as 100% your personal debt;
• When you later apply for your own mortgage, maximum LTV is typically reduced by 10%;
• Debt-to-income ratio (DTI) requirements also become stricter.

How do current stamp duty arrangements help first-time buyers?

Under current policy:

• Residential properties priced at HK$4 million or below only require HK$100 ad valorem stamp duty;
• For joint owners wanting to "remove name" (e.g., properties under HK$8 million), half the ownership can be transferred at lower cost.

What situations trigger bank Call Loans?

Common triggers include:

• Prolonged payment arrears or multiple serious late payments;
• High-LTV mortgaged properties discovered to be illegally rented out;
• Accounts involved in suspected money laundering and forcibly closed.