SUN Hung Kai Properties is providing up to 90 per cent of mortgage financing in the sale of 180 garden houses at its huge residential project Palm Springs in Yuen Long.
The aggressive financing approach is likely to further upset the Government, which has resolved to maintain the 70 per cent ceiling on mortgage loans, and has denounced arrangements between some banks and developers to offer extra credits to home buyers.
In an apparent bid to boost sales of Palm Springs houses, Sun Hung Kai, one of the territory's biggest property developers, will provide buyers with three alternatives for mortgage loans.
As well as the normal practice of getting 70 per cent mortgage loans from banks, buyers can apply to Sun Hung Kai's finance subsidiary for mortgage loans of up to 90 per cent of property value.
Also, home buyers can apply for a 80 per cent mortgage if they choose a stage-payment method.
This means they put up only 10 per cent of the flat value as down payment, followed by five per cent in June and five per cent in September.