| Under Section 44(1) of the
Conveyancing and Property Ordinance, "a mortgage of a legal
estate, including any second or subsequent mortgage of that
legal estate, may be effected at law only by a charge by deed
expressed to be a legal charge". Therefore, a majority
of the security documents over land in Hong Kong should, strictly
speaking, be called "legal charges". However, as "mortgage"
and "mortgage loan" are commonly used, these terms
will be used throughout this monograph whether the relevant
mortgage document is a "legal charge" under Section
44(1) of the said Ordinance.
There are a number of ways for a property buyer to raise
a mortgage loan and a variety of mortgage plans on the market.
This monograph briefly describes the various types of loans
and mortgages available and the factors that a bank will normally
take into account when considering a mortgage loan application.
The Mortgage Insurance Programme provided by the Hong Kong
Mortgage Corporation Limited (HKMC) is also introduced. The
programme assists members of the public in purchasing their
own homes and is likely to be considered when a purchaser
intends to buy a new home with a mortgage loan.
This monograph serves as a general introduction to estate
agency practitioners on mortgages. Banks may change their
policies and offer new mortgage products from time to time,
and the information given here does not pertain to any particular
situation or case. Readers should seek advice and information
from banks, lawyers and other relevant professionals on any
matters encountered in specific situations and contact HKMC
for further details of the Mortgage Insurance Programme. |
