Hong Kong Relaxes Mortgage Rules to Bolster Property Market
- Loan-to-value ratio for all residential properties set at 70%
- Interest rate cuts have not led to property market rebound
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Hong Kong eased its mortgage rules to allow homebuyers to fork out lower downpayment, aiming to address a prolonged property slump in the city.
The loan-to-value (LTV) ratio for all residential properties will be set at 70%, Chief Executive John Lee said in his policy address on Wednesday. The change will reduce the required downpayment for homes valued above HK$35 million ($4.5 million) which had a ratio of 60% previously. The LTV ratio for company-held properties will also rise to 70% from 60%.