Step 7: Estate agents must not make promises on mortgages
According to the Practice Circular (No. 13-04 (CR)) issued by the EAA, estate agents must not make any statement to assure prospective purchasers of first-hand residential properties that they can guarantee the successful approval of a mortgage loan or the attainment of specific mortgage terms for the purchase of the property.
Given the wide variety of mortgage plans offered by banks or vendors, prospective purchasers are advised to seek information directly from the banks or vendors concerned.
As the Hong Kong Monetary Authority periodically revises its guidelines on property mortgages in response to market conditions, lending institutions consider various factors when approving loans, including the applicant's financial situation, monthly income, and income sources, to assess their repayment ability. Additionally, different banks have varying approval criteria, incentives offered and the mortgage terms, prospective purchasers are advised to directly consult lending institutions for detailed and accurate information.
Before signing a provisional sale and purchase agreement for a residential property, prospective purchasers should first ensure they have sufficient financial capacity to complete the purchase.