Concrete Analysis | Mortgage borrowers should seek professional advice before making a purchase decision

Prospective purchasers are reminded to carefully consider their own financial situation before making a property purchase decision. In most situations, whether a property transaction can be completed depends on the amount of mortgage loan that could be obtained.

Prospective purchasers should bear in mind that there are numerous factors affecting the approval of their mortgage applications.

Some prospective purchasers may ask property agents for mortgage information before making their purchase decision. However, according to the guidelines of the Estate Agents Authority (EAA), property agents must not make any statement to assure prospective purchasers that they will successfully obtain a mortgage loan or secure the desired mortgage terms to finance their purchase.

In fact, as mortgage terms are complicated and mortgage amounts vary from case to case, prospective buyers should not make any purchase decision based only on the information provided by property agents. Instead, they should seek direct financial advice from banks or other financial institutions.

Here, I would like to share a non-compliant case of a salesperson who gave assurance to his client on the amount of mortgage loan that could be obtained for a first-hand residential property.

The salesperson arranged for a prospective purchaser to inspect the residential property. The prospective purchaser said the price was too high, and unaffordable.