Pan Asian launches mortgage broking unit
Pan Asian Mortgage Group says it has lined up more than 1,000 property agents and is in partnership with more than 10 banks for its new mortgage broking service.
Its managing director Leland Sun said he saw tremendous potential in the sector in which brokers shopped for the best deal for clients. He said mortgage broking accounted for about 22 per cent of the HK$170 billion mortgage market, while banks held the rest.
'For every 10 mortgage applications, only three go through mortgage consultancy firms, so there are enormous business opportunities,' he said after announcing the establishment of Pan Asian Mortgage Advisory Co (Pamac).
In the United States and Australia, 50 per cent of home purchasers got their loans through mortgage brokers, Mr Sun said. He predicted Pamac would capture 5 to 10 per cent of the highly competitive market within 18 months.
Lamson Lam, associate director of Pamac, said its sister company Pan Asian Mortgage was also a mortgage lender, giving Pamac a competitive edge. 'Because we're also mortgage lenders, we understand banks' requirements and we can put together the best mortgage plan for them.'
Pamac could help businessmen and self-employed borrowers with irregular income to put together a plan to satisfy home lenders. 'We can help these clients to structure their income proof to meet banks' lending requirement,' he said.
Currently, mortgage brokers such as Midland Realty's MReferral Mortgage Brokerage Services and Centaline Property Agency's Centaline Finance are run by property agencies which only refer home buyers to banks.
Mr Sun said Pamac also planned to develop the mortgage advisory market by offering the highest mortgage and loan approval standards, pointing to the problem in the United States. 'In the US, home purchasers did not understand the mortgages [products] when they signed on the dotted line. Getting mortgages is not just about interest rates. We see our service as offering value to clients.'