Mortgage Referral Benefits

Why do many people recommend using mortgage referrals instead of going directly to banks?

Mortgage referrals can compare interest rates, cash rebates, and approval conditions from multiple banks simultaneously, and assist with documentation and queries. According to regulations, banks should offer similar rates to direct and referred customers, so using a referral generally won't be more expensive than walk-in, and may even make it easier to get high rebate packages.

Income Verification Red Flags

What income and account records commonly trigger bank approval red flags?

Common red flags include: unused revolving credit limits, frequent gambling transactions (like HKJC) in salary accounts, large transfers for repaying finance company loans for relatives, and monthly credit card payments far exceeding monthly income. Banks may suspect hidden debts or inaccurate income declarations.

Presale Property Mortgages

When should I start applying for a mortgage when buying presale properties?

Generally, it's recommended to start contacting banks or mortgage referrals about three months before the expected completion date, and prepare income documents. If the developer delays completion, banks may need updated documents or fresh credit checks, so allow sufficient time for changes.

Copy Deed Risks

Can I get a mortgage if the second-hand property only has a copy deed?

In some cases (such as "residential with parking" split sales) only certified copies remain. If lawyers can trace and verify the title source, banks usually still accept it. However, for genuine missing deed cases, mortgage approval will be very conservative or even impossible.

Guarantor Impact

How does being a guarantor affect my future property purchase?

Guarantors bear legal responsibility for the related mortgage, and repayments are fully counted as the guarantor's debt. When applying for your own mortgage later, borrowing capacity is typically reduced by 10%, and debt-to-income ratio requirements become stricter, significantly reducing actual borrowing amounts.

💡 Tip: Think carefully before becoming a guarantor. It can significantly impact your own property purchase plans for years to come.