Beware of mortgage and borrowing traps
There are many loan promotions in the market. Finance companies and intermediaries may use various ways to encourage the public to pledge their properties and apply for loans. Some of these loans may involve high interests and fees, leaving the borrowers heavily indebted, and even losing the pledged properties. Pay special attention to the following:
- Cold calls that claim to be from a bank staff
- Letters with logo similar to the Housing Authority
- Claim to offer low interest loans or help restructure debts
- Claim to offer mortgage loans that do not require income proof and no need to notify the other owner of the co-owned property etc.
Read the following sections for tips to protect yourself from borrowing traps.