ABOUT 350,000 flats will be ineligible for a mortgage by 1997 because they will be more than 20 years old and unlikely to qualify.
A survey conducted by chartered surveyor Brooke Hillier Parker found the 30-year mortgage rule, being the age of the flat plus the pay-back time, already has cut out more than 33 per cent of the 861,255 units in the market.
Matthew Richardson, head of research for Brooke Hillier Parker, said the survey showed that in the run-up to 1997, more private homes would be unable to qualify for a mortgage if these lending rules remained.
He said the 30-year rule meant people would no longer be able to buy homes in the older districts of Hong Kong and would have to look to the New Territories for housing.
He said banks should not be blamed for their restrictive mortgage lending policies for old residential stock.
'I wouldn't say it is unfair,' Mr Richardson said. 'I'd say it's the banks covering themselves. They are not prepared to lend on something which is perceived as old. It's a cultural response.' Of stock which is older than 20 years, 53 per cent (290,793 units) is located in Kowloon.
