Regulatory Alerts2024-10-16
Added · Updated
Prudential Measures for Property Mortgage Loans
The Hong Kong Monetary Authority adjusted countercyclical macroprudential measures for property mortgage loans to standardize the maximum loan-to-value ratio at 70% and the debt servicing ratio limit at 50% for all residential and non-residential properties. These changes eliminate previous distinctions based on property value, occupation status, and existing mortgage obligations, thereby simplifying the regulatory framework for authorized institutions. The adjustments take effect immediately for transactions with provisional sale and purchase agreements signed on or after 16 October 2024.