OVER the past year, the Hong Kong Monetary Authority's 70 per cent maximum mortgage lending guideline to banks has increasingly become a farce. It has reached the stage where so many developers are offering top-up financing of 10 to 20 per cent that almost no one looking to buy a flat in one of the territory's new developments needs to come up with the full 30 per cent down payment.
In a desperate attempt to lure sufficient buyers, the privately-run Nan Fung Development even offered top-up packages to 100 per cent on apartments in four of its projects.
There are so many exceptions to the rule, many would argue that the rule should be declared obsolete, or at least relaxed.
The Monetary Authority, however, stubbornly insists the 70 per cent ceiling is here to stay - for the foreseeable future, at least.
Lobby groups, including those representing developers and estate agencies that have been severely hit by the property market, have proposed relaxing the ratio by an initial five or 10 per cent to 75 per cent or 80 per cent to see how the market reacts.
Some banks have openly said the 70 per cent ceiling has had its day.