Hong Kong to Relax Mortgage Rules, Adjust Loan-to-Value Ratio to 70%

Oct 16, 2024, 04:59 AM

Hong Kong is set to relax its mortgage rules to allow lower downpayments for homebuyers amid a prolonged property slump. The policy, announced by Chief Executive John Lee in a policy address, will see the Hong Kong Monetary Authority (HKMA) adjust the loan-to-value ratio limit to 70% for residential properties. Non-residential property mortgage limits and the debt-to-income ratio will also be adjusted to the same level. This move is part of a broader policy stimulus from Mainland China aimed at benefiting the Hong Kong housing market and making it easier for young people to buy homes.