he would relax the mortgage insurance plan to help the 90% and 80% mortgage ceilings for first home buyers who are eligible for insurance be raised to 8 million yuan and 10 million yuan respectively
The Secretary for Financial Affairs and the Treasury, Mr Lau Yi Cheung, responded in writing to Members’ enquiries yesterday, stating that from October 17 to November 22, a total of about 1,300 applications have been approved by securities companies, and more than nine have become first home buyers.
According to the Land Registry data, in November, a total of 2,091 first-hand private residential property purchases and sales were recorded, with a total registered value of 19.673 billion yuan, an increase of 54% and 17% from October, and the highest since the 6th month of the same period. The results are immediate. In the first 11 months, a total of 20,242 first-hand private home purchases and sales were registered, which is the first time since 2004 that it has surpassed the 20,000 year-on-year level and reached a new high in 15 years.
More than 90% of first-time customers
Liu Yixiang said that the latest amendments to the mortgage insurance plan are designed to provide more appropriate support for first-time home buyers or property changers who have the ability to repay but lack sufficient first installments. From October 17 to November 22, the insurance company approved a total of about 1,300 applications, more than nine of which became first-time home buyers.
Liu Yixiang emphasized that although the property price cap of the insurance plan has been adjusted, borrowers still need to meet certain eligibility criteria when applying for the insurance plan, including a 50% contribution income ratio and the need to pay additional insurance costs to Mitigate risks.
Mortgage insurance companies have additional eligibility requirements for borrowers who apply for more than 80% of mortgage insurance, including that the applicant must be a first-time home buyer and a fixed salary.
Liu Yixiang also said that home ownership is the most important investment in life, and prospective home buyers should carefully consider their own home purchase needs and repayment ability.
Green light for MPF buying
In addition, as to whether it will consider allowing first-time home buyers to use MPF to pay the first period and related expenses, Liu Yixiang said that the MPFA has reviewed relevant arrangements in other countries and regions, but the MPF contribution ratio in Hong Kong is low. Allowing the use of MPF home purchases will significantly weaken the MPF protection available to scheme members after retirement. As of the end of last year, each MPF member only had an accrued benefit of RMB 186,000.