(Policy Address 2024) Loan-to-value ratio for mortgages to be relaxed

In a bid to encourage more people to purchase a home and to stimulate the city's property market, John Lee said on Wednesday that the government would relax the maximum loan-to-value ratios of mortgage loans.

This would allow people to borrow more against the value of a property they want to buy.

Lee said the Hong Kong Monetary Authority would adjust the maximum loan-to-value ratio for homes to 70 percent, regardless of their value, whether the properties were for self-use or not, or were being purchased by first-time buyers.

The maximum debt servicing ratio would be adjusted to 50 percent.

For non-residential properties, the maximum loan-to-value ratio and the maximum debt servicing ratio would be adjusted to the same levels.