HKMA Broadens Mortgage Insurance Programme Eligibility Criteria

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.

Image
source:
Shutterstock