Mortgage referrals save time
The property market remains red-hot despite last week's policy address in which Chief Executive Donald Tsang Yam-kuen announced new measures to cool the sector.
Angela Wong, a director of real estate agency Midland Realty, says: 'Many people were worried that the policy address could hurt the market.'
However, prices are still heading north and 'other related businesses have also benefited, such as mortgage referral services', says Wong, who is also a director at mReferral, a mortgage referral company jointly set up by Midland and property developer Cheung Kong (Holdings).
'People can shop around at different banks for the best mortgage deal, but it will take up a lot of their time,' she says. 'We provide an information hub on the mortgage market and a one-stop service.'
Mortgage referral services comprise a free hotline which homebuyers can call to find out information from more than 30 banks in Hong Kong. The service is free for buyers, as mReferral charges a commission from banks.
Wong says the service provided differs for each property buyer. 'Depending on the needs and circumstances of a homebuyer, such as the age of the flat and the required mortgage amount, we can suggest a suitable mortgage,' she says.
'Some people may be looking for the lowest rates, others may need a bank offering the highest mortgage ratio for the property. With frequent contact with banks, we know which bank and which deal to refer to, depending on the specific needs of a homebuyer.
'Some banks have no problems lending, while others may have used up their lending quota. We have this sort of information because we have close contacts with them, so we can refer homebuyers to a bank where they have a better chance of getting a mortgage loan.'
Wong estimates that mReferral handles about two-thirds of Hong Kong's mortgage referrals and nearly 20 per cent of all mortgages. Besides providing an advisory service over the phone, Wong says the company can also help homebuyers with documentation.
Wong says mortgage referral services are widely used by homebuyers in the United States and Canada, and are now catching on in Hong Kong, 10 years after being introduced here by Midland Realty chairman Wong Kin-yip.
The firm employs 20 staff to answer telephone inquiries, and they have an average of about seven years' work experience. Many have worked in banks before, and are familiar with the mortgage process.
'Homebuyers can do their own mortgage shopping and do not necessarily need to use our service, but we can save them a lot of time,' Wong says.
