Money lender Hitachi Capital (HK) is teaming up with mortgage broker mReferral to offer home loans of up to 95 per cent of the price of a flat, with the loan capped at HK$5 million.
The move comes after the Hong Kong Mortgage Corp's decision in February to tighten eligibility for payment protection insurance on home loans.
Currently, homebuyers can secure up to 90 per cent of the price of homes worth HK$4 million or less through mortgage insurance from the HKMC, down from the previous ceiling of HK$6 million.
"We hope to expand our market share in mortgage lending as well as assist buyers with sound repayment ability to make home purchases amid credit tightening," said Anthony Hong, executive director at Hitachi Capital, which specialises in offering car loans.
When homebuyers take out loans worth more than the standard 70 per cent value of a property from banks, the corporation insures the portion of the loan exceeding the threshold.
Hong said Hitachi Capital's scheme would allow successful applicants to purchase homes worth up to HK$5.5 million.