Home loan relief cheers Chengs

There was a welcome surprise for the Cheng family, who expect proposed mortgage relief to put an extra $4,000 a month in their pockets.

The sandwich-class family of four lives in a 685-square-foot Taikoo Shing flat bought for $2.2 million six years ago.

The family has a monthly income of $50,000, earned by father Frank Cheng Ka-hing, 50, who edits an education periodical and mother Sandra Poon King-sin, 46, who is an outreach and field work director for a church group.

They have two sons, Ka-hang, 17 and Ka-wai, 14.

The Budget gives the family an increased tax allowance of $73,000 in the coming financial year, of which $45,000 comes under the mortgage relief scheme.

'It's an unexpected gift for us. We were not expecting any excitement in the Budget after Mr Tsang's earlier hints,' Mr Cheng said.

The monthly mortgage payment eats up $7,500, but the tax allowance on mortgage interest payments means the family will save about $4,000.