Regulatory Alerts2010-01-08
Added · Updated
Residential Mortgage Lending Annex 3: Prudential Measures For Residential Mortgage Loans
The Hong Kong Monetary Authority mandates that authorized institutions reduce the maximum loan-to-value ratio to 60% for residential properties valued at HK$20 million or more to mitigate rising market risks. Properties valued below HK$20 million remain subject to a 70% loan-to-value ratio, which is capped at a maximum loan amount of HK$12 million to prevent lending anomalies. Institutions are also required to prudently assess debt servicing ratios by accounting for potential interest rate increases and maintain records for regulatory monitoring.
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