Regulatory Alerts2013-02-22
Added · Updated
HKMA Prudential Measures on Loan-to-Value and Debt-Servicing Ratios for Property Mortgage Loans
The Hong Kong Monetary Authority issued updated prudential measures on 22 February 2013 to tighten loan-to-value and debt-servicing ratio limits for property mortgage loans. The regulations impose stricter caps based on property value, applicant income source, and existing mortgage status, while also raising the stressed debt-servicing ratio interest rate hike assumption from 200 to 300 basis points. Exemptions are provided for applicants with close ties to Hong Kong or those undertaking specific refinancing and replacement transactions.