Advertisement
Hong Kong mortgage changes attract interest, but property experts foresee limited impact on home prices, transactions
- Brokers report uptick in enquiries after the monetary authority announced the first relaxation of mortgage policies since 2009
- Sales of larger flats may get a boost, but the change is not expected to make a big difference for the overall property-market outlook, analysts say
Reading Time:3 minutes
Why you can trust SCMP
1
The easing of mortgage policies in Hong Kong from Friday has piqued the interest of potential homebuyers and current owners, but will not make a big difference for the overall property-market outlook, according to brokers and bankers.
Mortgage broker mReferral has received about 10 per cent more enquiries from customers over the weekend and on Monday, compared with the week before the changes were announced.
The Hong Kong Monetary Authority (HKMA) on Friday evening eased mortgage rules for the first time since 2009 to make it easier for first-time homebuyers and those who want to upgrade to bigger flats.
Advertisement
Loan eligibility for homes that cost more than HK$10 million (US$1.3 million), previously limited to 50 per cent, has been refined into three tiers: up to 70 per cent financing for homes of up to HK$15 million for the owners’ own use, 60 per cent loans for homes valued between HK$15 million and HK$30 million, and 50 per cent financing for homes priced above HK$30 million, according to the HKMA and the Hong Kong Mortgage Corporation.
“We got a lot of enquiries in the past three days ranging from new homebuyers to those who want to trade up, as well as those who want to refinance with their existing mortgage to get a higher amount of loan under the new policies,” said Eric Tso Tak-ming, chief vice-president at mReferral.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x