Loan wide mortgage into the car passengers to help home buyers

Earlier in the month, the government said it could consider relaxing the mortgage loan scheme under the scheme, but worrying it was considered “spicy.” Praveen Choudhary, managing director of Morgan Stanley, believes property prices are on the rise. If the government is willing to relax the ceiling on mortgage rates, it may stimulate smaller units to outperform larger units but at least help lower-income families.

Some analysts believe that the relaxation of the mortgage ceiling will be on the property “fueled”, Choudhary said that both the Hong Kong government and others also know that property prices continue to rise, lower income people can not afford property prices and all parties are looking for ways to help get started Customers, but will not help to afford the investment or outsiders.

Or to stimulate the small household rally only needs

“If the ceiling of $ 90,000 for mortgages is to be relaxed from 4 million to 5 million, it will only help the door-openers. In reality, the buildings under $ 5 million can not be more than one.” He agrees that if Relaxing the mortgage limit will probably stimulate the upward trend of small units. However, there are reasonable reasons behind this.

At present, under the Mortgages Insurance Scheme, a maximum of 90% of mortgages can be purchased by eligible persons for purchases of up to 4 million flats. The maximum of 4.5 million to 6 million yuan is 80%.

Since 2010, the Hong Kong government has pushed up the property market sporadically from time to time. Choudhary said that the restrictions on stamp duty and mortgage rates have been quite stringent and there is not much room for further tightening. He added that if property prices increase by 10% or below a year, they are reasonable and acceptable to any free economy. When property prices rise by double digits, we need to consider additional measures.

When parents and children get in the car, Choudhary does not worry about the situation, which triggers more risk. He pointed out that apart from the stress tests put on the mortgage lenders by the HKMA, many parents put their own properties plus for the first phase of their children’s growth in disguise. In the end of 2015, the property market adjusted 10% to 15% Did not appear big problem, that the adjustment of the property market is still within the control.