Plan to offer more interest-free loans

OFFICIALS are considering doubling the number of interest-free loans to help aspiring home-owners take advantage of falling prices.

Housing Director Tony Miller said he would propose an increase in the number of Home Loan Purchase Scheme packages from 4,000 to 10,000 a year in July.

The scheme, offering loans up to $600,000, is available to families earning less than $33,000 a month.

Not all the 4,000 loans offered last year were taken up because prices seemed too high, Mr Miller said.

'Now with the market down we're finding there are quite a few people coming back, saying that they would like to take out a loan,' he said.

Tung Chee-hwa has committed the Housing Department to considering increasing loans under the scheme.