Regulatory Alerts2024-12-04
Added · Updated
Prudential Measures for Property Mortgage Loans
The Hong Kong Monetary Authority issued a circular introducing a one-off special scheme to allow authorized institutions to offer more flexible residential mortgage loans for eligible buyers of first-hand uncompleted properties. This measure permits a maximum loan-to-value ratio of 80% and a debt servicing ratio limit of 60% for applicants who signed provisional sale agreements between 2021 and 2023 and face valuation declines. The scheme specifically targets buyers with genuine home ownership needs who require additional down payment funds due to property price drops, while maintaining standard prudent lending criteria for other cases.
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