The Chief Executive’s Policy Address released in October relaxed the ceiling on property prices for mortgage insurance schemes to assist first-time home buyers
The Secretary for Financial Services and the Treasury, Mr Lau Yi Cheung, responded in writing to questions from members of the Legislative Council yesterday, stating that from October 17 to November 22, a total of about 1,300 applications were approved by the insurance companies, of which more than nine were first-time home buyers .
Approved more than nine times become the first home
Liu Yixiang pointed out that the latest amendments to the mortgage insurance plan are aimed at providing more appropriate support for first-time home buyers or exchangers who have the ability to repay but lack sufficient first installment. The Hong Kong Mortgage Insurance Corporation on October 17 this year As of November 22, about 1,300 applications have been approved, and more than nine of them have become first-time home buyers.
Some scholars worry that if the property market reverses and the property value is reduced by 10% or more, first-time home buyers will be reduced to negative equity owners. Liu Yixiang pointed out that the fluctuations in the property market are affected by many different factors. According to the insurance company, the property market will be closely monitored and the effectiveness of the plan will be reviewed in a timely manner. Before the public makes a decision on buying a property, the public must carefully analyze it and do its best, and pay attention to it. Various potential risks.
The government announced earlier that the ceiling on the price of a homeowner who applied for a mortgage of up to 90% was raised from 4 million to 8 million
while the ceiling on the price of 80% of the mortgage was raised from 6 million to 10 million. Liu Yixiang continued that although the property price ceiling under 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.