Hong Kong Residential

Asian Cities

1H 2015

 

New policies target residential LTVs
On February 27 2015, the Hong Kong Monetary Authority (HKMA) and the Hong Kong Mortgage Corporation (HKMC) announced the latest round of prudential measures on property mortgages, which are summarised below:

HKMA

The maximum loan-to-value (LTV) ratio for self-use residential properties with value below HK$7 million will be lowered by a maximum of 10 percentage points, i.e. the highest LTV will be reduced from 70% to 60%.

The maximum debt-servicing ratio (DSR) for borrowers who buy a second residential property for self-use will be lowered to 40% from 50%, and the stressed-DSR cap will be lowered to 50% from 60%.

The maximum DSR of mortgage loans for all non-self-use properties, including residential properties, commercial and industrial properties and car park spaces, will be lowered to 40% from 50%, and the stressed-DSR cap will be lowered to 50% from 60%.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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