Hong Kong Government Eases Mortgage Restrictions

The Hong Kong government has announced a major relaxation of mortgage lending restrictions in response to a sluggish property market. Chief Executive John Lee revealed that the maximum loan-to-value (LTV) ratio for residential properties will now be set at 70%, alongside an increase in the maximum debt servicing ratio to 50%. This policy change aims to stimulate the property market and provides enhanced liquidity for both first-time buyers and those upgrading their homes. The adjustments apply to all buyers without discrimination, reflecting a shift from previous, stricter rules. The real estate sector has responded positively, anticipating a boost in transaction volumes, particularly in the luxury market. Concurrently, Accord Mortgages has also adjusted its interest coverage ratio rates to alleviate affordability pressures for landlords, further indicating a trend towards supportive measures in the housing sector.