A Pacific Century CyberWorks (PCCW) sales manager claims he was refused a home loan by the Hong Kong Mortgage Corporation because the government lender thought his job might not be secure. The 30-year-old says he was asked to either find a guarantor or produce a letter from the company giving an assurance he would not be laid off. His rejection at the end of July came just two months after the corporation approved him for a bigger loan without any request for reassurances of his job security. In between his two applications, the company cut 340 jobs in June and analysts believe there may be more job cuts in store. The corporation eventually granted him the loan only after he provided a guarantor. 'The HKMC employee in charge of my case told me the corporation was concerned about my job security because of the recent lay-off rumours,' the salesman said. 'I don't understand why they rejected my application this time. They approved my first loan application without much trouble.' The salesman wanted to buy a house in Tsuen Wan that cost about $2 million. He had only enough savings to pay a 10 per cent down payment and applied for a 20 per cent mortgage insurance - commonly known as a second mortgage - from the corporation to top up his 70 per cent mortgage loan with the DBS Kwong On Bank. His application for the second loan was approved by the corporation. But he did not draw it after deciding not to go ahead with the purchase. He later found another flat and reapplied for a 15 per cent mortgage insurance from the corporation. But this time he was turned down even though the loan amount was smaller and his salary had increased slightly. A source from DBS Kwong On Bank confirmed the corporation had told the bank it was concerned about job security at PCCW. A DBS Kwong On Bank spokesman refused to comment on individual cases due to client confidentiality. But she said it was not uncommon for money lending institutions to deny an application over concerns about the applicant's job stability or the prospects of the industry in which the applicant was employed. A spokesman for the corporation denied it had turned the application down because the man worked for PCCW. 'The key consideration of an applicant's credit risk is his repayment ability. We do not discriminate against any company or any industry.' A PCCW spokesman said it was improper to comment on the corporation's concerns about PCCW employees' job stability. However, she said the company had no immediate plans to lay off staff.
