On July 7th, the Hong Kong Monetary Authority (HKMA) in collaboration with the Hong Kong Mortgage Corporation (HKMC) implemented measures to relax mortgage rules to ease the down payment requirements for potential buyers. These changes benefit first-time buyers and owners looking to trade up by adjusting the loan-to-value (LTV) ratio.
Based on the Hong Kong Monetary Authority (HKMA) & the Hong Kong Mortgage Corporation's (HKMC) new policy, the key changes are as follows:
- For residential properties intended for self-use:
- Maximum loan-to-value (LTV) ratio will increase to 70% for properties valued up to HK$15 million.
- Maximum loan-to-value (LTV) ratio will increase to 60% or for properties valued between HK$15 million and HK$30 million.
- Maximum loan-to-value (LTV) ratio of 50% will remain unchanged for properties valued above HK$30 million.
Buyers can qualify for additional financing through The Hong Kong Mortgage Corporation’s Mortgage Insurance Programme (“MIP”), though the additional insurance may come at a premium depending on the loan amount. Given this, a buyer can further lower their down payment and increase the loan-to-value for a property under $30 million to the following levels:
Below is a selection of properties where buyers may benefit from the relaxed mortgage rules!
Curated Homes between HK$15 million and HK$30 million
Amazing City View
McDonnel Road, Mid-levels Central
1,311 SF (S) | 3 BEDS | 2 BATHS
Modern Comfort Living
Robinson Road, Mid-Levels West
854 SF (S) | 2 BEDS | 2 BATHS
Uninterrupted Sea Views in Low Rise
Mount Davis Road, Pokfulam
1,307 SF (S) | 2 BEDS | 2 BATHS
HK$ 28.5M | HK$ 65K incl.
Your Urban Oasis
Village Terrace, Happy Valley
1,103 SF (S) | 2 BEDS | 2 BATHS
Outdoor living lifestyle
Hong Chung Road, Sai Kung
2,100 SF (G) | 5 BEDS | 4 BATHS
Curated Homes up to HK$15 million
Prime Location Apartment
Luckifast Building, Wan Chai
715 SF (S) | 1 BED | 1 BATH
An Outdoor Retreat Home
Ka On Building, Western District
517 SF (S) | 0 BED | 1 BATH
HK$ 10.5M | HK$ 39K incl.
Modern Village House
Lobster Bay, Clearwater Bay
1,360 SF (G) | 2 BEDS | 3 BATHS