Practical tips about the top ten thematic topics that smart consumers should pay attention to during property transactions or appointing estate agents.
Valuation and Mortgage Information
Generally speaking, it may be more difficult for the self-employed, people with irregular incomes and the retired to be granted a mortgage loan. Besides, the Hong Kong Monetary Authority may, in light of market conditions, tighten the debt-to-income ratio and the loan-to-valuation ratio for certain groups of people and properties.
According to the EAA’s practice circular on estate agents’ promotion of first-hand residential properties, estate agents must not make any representations to assure a prospective buyer that he/she will successfully obtain a mortgage loan to finance his/her property purchase or the terms of mortgage loans.
Before making property purchases, home buyers should understand their abilities to repay mortgage loans. They should also make enquiries with banks about the valuation of the property and whether they can obtain sufficient mortgage loans to finance the purchases.