For residential properties valued at $20 million or more, the LTV ratio will be capped at 60%. For properties valued at below $20 million, the 70% LTV ratio will be maintained, but the maximum loan amount will be capped at $12 million. Revision to the Mortgage Insurance Programme The HKMC has decided to implement the following changes to the insurance eligibility criteria under MIP: for mortgage loans with MIP coverage from over 70% to 90% loan-to-value (LTV) ratio, the maximum mortgage loan size will be lowered to HK$12 million; for mortgage loans with MIP coverage from over 70% to 95% LTV ratio, the maximum mortgage loan size will be lowered to HK$6 million; and for mortgage loans with MIP coverage from over 60% to 90%, the maximum mortgage loan size will also be lowered to HK$6 million.
Archive for 2009
(Published by South China Morning Post, 09 Sep 2009) There is no doubt that Hong Kong’s residential property market has defied all logic, expectations, and global market trends. Property prices for the mass market have risen 15 to 20 per cent since November last year, while the upper-end/luxury market has catapulted ahead anywhere from 25 per cent to 75 per cent. By contrast, for the past 18 months, beginning with the onset of the recent depression-like market slowdown, residential property markets in developed countries such as the United States, England, Japan and Australia have fallen anywhere from 25 to 60 per cent. Even on the mainland, residential property prices in most major cities have been flat or marginally higher, with Shenzhen the outperformer.