Hong Kong relaxes mortgage rules to support property market
Hong Kong is relaxing its mortgage rules for homes under construction, as the government takes more steps to support the city’s property market that has been weighed by high borrowing costs.
Eligible first-time home buyers can now pay 10 per cent down payment for properties under construction with values of up to HK$10 million ($1.3 million), Hong Kong Mortgage Corporation subsidiary said on Friday.
Previously, buyers of such properties valued at more than HK$6 million could only obtain 70 per cent loan-to-value ratio, resulting in higher down payment requirements.
The adjustment will help to improve sentiment in the first-hand property market, where developers have been under pressure to cut prices to increase sales. CK Asset Holdings, a leading developer owned by Li Ka-shing, last month priced its new project at a seven-year low.