HKMA Broadens Mortgage Insurance Programme Eligibility Criteria
Darius Baruo Jun 15, 2024 01:55
The Hong Kong Monetary Authority has expanded the eligibility criteria of the Mortgage Insurance Programme.
In a recent announcement, the Hong Kong Monetary Authority (HKMA) has made technical adjustments to the Mortgage Insurance Programme (MIP), according to the Hong Kong Monetary Authority. These changes align with the countercyclical macroprudential measures initially introduced on 28 February 2024.
Expanded Eligibility Criteria
HKMC Insurance Limited (HKMCI) has confirmed that the current eligibility criteria of the MIP will now be extended to all mortgage insurance applications for owner-occupied residential properties in the primary market. This expansion applies regardless of the execution dates of the relevant provisional sale and purchase agreements, and the adjustment takes effect immediately.
Assisting Homebuyers in Genuine Hardship
The HKMA's technical adjustment aims to support homebuyers facing genuine hardship, including those who have purchased residential properties under construction in recent years and opted for stage payment plans. This change enables these buyers to secure mortgage loans at higher loan-to-value ratios, facilitating home ownership for those in need.
Context and Implications
The adjustment is part of the HKMA's broader efforts to maintain financial stability and support the housing market amid changing economic conditions. By broadening the eligibility criteria, the HKMA aims to provide relief to homebuyers who may have been constrained by previous eligibility requirements.
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