How To Choose a Mortgage Broker in Hong Kong
How To Choose a Mortgage Broker in Hong Kong
Choosing a mortgage broker is one of the many decisions that you have to make during the home-buying process. Among the other choices includes the type of property that you will buy.
You also have to consider what type of mortgage you will borrow. But once you are sure about the property and the amount that you will borrow, it is equally important for you to choose the right lender that you will borrow from. To choose the right lender, that means you have to get the best broker.
Remember, you are borrowing the most expensive loan that you will make in your lifetime. You want to ensure that you will choose the lender who can give you the best loan terms, the lowest interest rates and the most flexible payment plan that is possible in the housing market.
You will be paying off this loan for more than a decade. The longer it takes for you to pay off a loan, the higher the interest that you need to pay. Not only that, you have to think about the charges and fees that you will encounter by choosing a particular mortgage broker.
If you choose the right one, you may be able to save thousands on your home loan. A broker can help you secure the right loan that will not cost you more than what is necessary. Of course, that is easier said than done. It takes a good amount of research and discernment to determine if you have a great mortgage lender in front of you.
According to Bloomberg.com, lenders in Hong Kong are scrambling to lower their mortgage rates because they want to attract borrowers to continue buying a property despite the current housing condition.
Just like the average salesman, they will come at you with flowery proposals and flattering promises. You need to know how to distinguish the good from the bad. A broker may just be the ticket to make that possible.
Qualities of good mortgage to help with your home loan
The mortgage broker that you will choose should not only be based on the firm they work with or the financial institution they have connections with. You want to know the specific qualities that make them the best in the industry because they can help make the home buying process less complicated.
But before you look at the qualities, you may want to think about the need to get a mortgage broker. They will help you get the best deal when it comes to choosing the financial institution that will lend you the mortgage.
However, you have to consider if they are really necessary. Although they can help you with the documents and matching with the right lender, you have to see if these are not something that you can do. While it may be convenient, hiring one will cost you. But if you are certain, then these are the qualities that you need to look out for.
Observe how they are when you ask them references.
A mortgage broker who is hesitant to show you references or proof of their claims may not have your best interests at heart. These brokers also have arrangements with lenders. Instead of finding a mortgage lender who perfectly fits your financial capabilities, they might push you towards the one willing to give them the most profit. They should never hesitate to give references and answer your questions.
Know the type of loan and lender you want.
Before you go to the broker, make sure you know what you want them to give you. Sometimes, you know what you want, and you simply need someone to do the legwork because you do not have the time to do it yourself. In case you have no idea about the mortgage lending industry, ask them for a list of options. Discuss your financial goals so they can show you the right selection of lenders.
Do your research.
Although you will get a list from the mortgage broker, make sure you research on your own. There are a lot of information online, especially for the big financial institutions. You can also get the opinion of family and friends who just purchased a home. You can even ask your real estate agent. Check out the Hong Kong Monetary Authority and the Hong Kong Mortgage Corporation Limited to help you understand the regulations about mortgage brokers and lenders. Make sure you are properly informed.
What questions should you ask a mortgage broker
When you have narrowed down your broker choices, you want to set a meeting with them so you can talk. These are the questions that you need to ask them.
- How will you communicate? Will you be meeting often or are they easy to reach through their phone?
- What are the fees involved in hiring the brokers? How are they commissioned – will it come from the lenders? What services are included in these charges?
- In case you want to continue with the transaction on your own, will there be a cancellation fee involved?
- In the home buying process, what expenses do you have to be prepared to pay? How much deposit will be required from you?
- Is it possible to waive the fees and include it in the mortgage?
- How long will the process take to complete?
Find out how the mortgage broker can help you lower the cost that you will pay when you buy your home in Hong Kong. You will both be benefiting from this transaction – at least if you choose the right professional to help you out.