Special Mortgage Scheme for Uncompleted Residential Properties

The Hong Kong Monetary Authority (HKMA) has introduced a one-off special scheme to relax supervisory requirements for property mortgage loans, allowing banks to assist homebuyers of uncompleted residential properties purchased between 2021 and 2023 using stage payment plans. Amid a 25% drop in property prices since their peak, some buyers face challenges securing funds due to lower property valuations. Under the scheme, eligible homebuyers can access loans with a maximum loan-to-value (LTV) ratio of 80% and a debt servicing ratio (DSR) limit of 60%. The scheme applies to self-occupied properties with mortgage applications submitted on or after December 4, 2024. Buyers are advised to consult participating banks for details and carefully assess financial risks when choosing payment plans.

Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/12/20241204-5/