Pay attention to mortgage information


In October, the Chief Executive announced revisions of the Mortgage Insurance Programme of HKMC Insurance Limited in the 2019 Policy Address. This led to a wide discussion in the community and rekindled some members of the public’s hope to own a property as mortgage financing is one of the most important concerns for many prospective purchasers.

Some estate agents may provide information to their clients about mortgage financing during the transaction. In this regard, I would like to remind consumers that licensed estate agents are not obliged to provide any information or advice on mortgage financing to their clients, or assure theirs clients that they will be able to obtain a mortgage loan, or make any guarantees on the terms of mortgage loans. But if they do, their explanation must be based solely on the information provided by the banks and finance companies, or the vendors concerned, and they must ensure that such information is accurate by taking all reasonable steps and exercising all due diligence to verify it. Any licensed estate agent who makes a representation about a mortgage loan without proper basis may have failed to comply with paragraph 3.4.1 of the Code of Ethics promulgated by the EAA.

As the consideration for purchasing a property is substantial, prospective property purchasers are advised to assess their own financial position and loan repayment ability and ascertain a financial arrangement that is suitable to their own needs before making a purchase decision. Purchasers should also make enquiries with banks or professionals directly about the valuation of the property and whether they could obtain sufficient mortgage loan to finance the purchase, based on their own circumstances.

Last but not the least, consumers should also pay attention to the latest policies on mortgage loans issued by the Hong Kong Monetary Authority. As to the details about the updated Mortgage Insurance Programme, please visit:

Ruby Hon
Chief Executive Officer
Estate Agents Authority