Regulatory Alerts2015-03-02
Added · Updated
HKMA Guidance on Macroprudential Requirements for Mortgage Financing
The Hong Kong Monetary Authority mandates that Authorized Institutions apply a 5-percentage-point reduction to Debt Servicing Ratio caps for mortgage loans exceeding normal Loan-to-Value ceilings by more than 20 percentage points. This stricter assessment applies to the borrower's total liabilities, including any additional financing obtained through co-financing or insurance schemes. Additionally, Authorized Institutions must require money lenders with credit relationships to confirm adherence to HKMA prudential guidelines or risk losing their banking sector credit lines.