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Citibank draws $1b response to scheme

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Citibank has received applications for an aggregate $1 billion in residential mortgage loans under a new government-managed insurance programme.

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The response to the first week of the programme was slightly above the bank's expectation, said William Lo Wing-yan, chief executive for global consumer banking in Hong Kong.

Mortgage insurance offered by the Hong Kong Mortgage Corp (HKMC) allows a homebuyer to top up his bank borrowings from 70 per cent of a property's value to 85 per cent.

The top-up portion is insured by HKMC-approved insurers at a premium paid by the homebuyer.

Banks have been competing fiercely for a share of the new market since the programme's launch at the start of this month, offering customers a range of benefit packages.

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Citibank is offering homebuyers cash subsidies to pay part of their premiums.

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