Hong Kong relaxes lending rules, granting more mortgage loans to homes below HK$30 million to bolster property market

Hong Kong’s monetary authority relaxed the city’s lending policies, offering more mortgage to homeowners and rental property to bolster the city’s ailing real estate industry.

Starting immediately, homes valued at less than HK$30 million (US$3.83 million) will be entitled to 70 per cent mortgage financing, compared with the previous rule that granted only 60 per cent credit to flats valued at between HK$15 million and HK$30 million, according to the Hong Kong Monetary Authority (HKMA).

Residential property that are valued at more than HK$35 million, considered luxury homes in Hong Kong, will be entitled to 60 per cent mortgage, according to the HKMA. For rental property that are not used by the owners, the maximum loan-to-value ratio will be increased to 60 per cent, from 50 per cent.