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HKMA expands Mortgage Insurance Program eligibility criteria
In a recent announcement, the Hong Kong Monetary Authority (HKMA) has made technical changes to the Mortgage Insurance Program (MIP), according to the Hong Kong Monetary Authority. These changes are in line with the countercyclical macroprudential measures initially introduced on 28 February 2024.
Expanded eligibility criteria
HKMC Insurance Limited (HKMCI) has confirmed that the current MIP eligibility criteria will now be extended to all mortgage insurance claims for owner-occupied residential properties in the primary market. This expansion applies regardless of the dates of stipulation of the relevant provisional sales contracts and the adjustment takes effect immediately.
Assisting homebuyers in real distress
The HKMA’s technical adjustment aims to support homebuyers who are facing real hardship, including those who have purchased residential properties under construction in recent years and have opted for staggered payment plans. This change allows these buyers to secure mortgage loans with higher loan-to-value ratios, making homeownership easier for those who need it.
Context and implications
The adjustment is part of the HKMA’s broader efforts to maintain financial stability and support the property market in a changing economic environment. 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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