Leading banks say their lending policies towards the private residential market are becoming more restrictive as they attempt to minimise risk and reduce speculation.
Hang Seng Bank mortgage-department chief Dennis Tang Kwok-leung said his bank's mortgage approval would be increasingly difficult to obtain.
The bank recently circulated new instructions to branches, urging them to assess applicants' repayment ability more critically.
Mr Tang said the acceptable debt-to-income ratio remained at 50 per cent but the definition of income would be more restricted.
Any source of revenue which did not fall under the bank's definition of stable income might need the approval of headquarters, Mr Tang said.
He said the bank did not like to provide personal loans as a way around mortgage-lending restrictions.
