Prudential measures for residential mortgage loans
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.