Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Press Releases

The Hong Kong Mortgage Corporation Limited Expansion of Mortgage Insurance Programme (MIP)

The Hong Kong Mortgage Corporation Limited (HKMC) announced today (Friday) an expansion of its Mortgage Insurance Programme (MIP) to increase the loan size ceiling for mortgages covered under the Programme from HK$5 million to HK$8 million. The expansion, which will take effect on 5 November 2001 (Monday), covers initially mortgage loans for completed properties with loan-to-value (LTV) ratio of up to 85%.

The MIP was launched by the HKMC in March 1999 with the aim of promoting home ownership in Hong Kong. The Programme currently covers mortgage loans for both completed properties and properties under construction (equitable mortgages), both up to a maximum loan size of HK$5 million. On the request of banks and with the support of the Approved Reinsurers, the HKMC has decided to raise the maximum loan size to HK$8 million.

Eligibility criteria for mortgage loans in the HK$5 million to HK$8 million bracket are set out in the technical note at Annex A. Further extension of the HK$8 million loan size ceiling to mortgages with LTV ratio of up to 90% and equitable mortgages will be considered later in the light of feedback from banks and the performance of the loans under the expanded programme.

Homebuyers interested in the expanded MIP may contact any of the 31 banks listed in Annex B or visit the HKMC's website at www.hkmc.com.hk.

 

The Hong Kong Mortgage Corporation Limited
2 November 2001

 

Annex A

Technical Note
Mortgage Insurance Programme
Eligibility Criteria for Loans
Exceeding HK$ 5 Million and up to HK$ 8 Million

Description: Eligibility Criteria for Floating Rate Mortgages with loan-to-value ("LTV") ratio greater than 70% on private residential properties that exceeds HK$ 5 million and up to HK$ 8 million.
Pursuant to Chapter 3 of the Mortgage Insurance Operational Manual, Insurance Eligibility Criteria for the Mortgage Insurance Programme comprise the following:

1. Mortgage Conditions; and
2. Underwriting Criteria

The Underwriting Criteria are summarised below:-
Product type Floating Rate Mortgages
Maximum loan size at origination Floating Rate: HK$8,000,000
(loans with payment holiday are not eligible)
Determination of Loan-to-value ratio
  • Maximum loan-to-value ratio (LTV) at origination
  • Valuation Report

 

85%
(may go slightly over 85% if the premium is financed by the mortgage loan)


Written valuation report prepared by Insured's internal/external qualified valuers, or Insured's internal valuer plus verbal valuation by an external qualified valuer including, where applicable, justifications on the appraisal value. The purchase price must exclude the value of any incentives offered by the relevant vendor or any other third party to the Obligor in the purchase of the property.
Debt-to-Income ratio calculation
  • Maximum debt-to-income ratio at origination

 

 

 

50%

Employment Type Non-regular salaried/self-employed persons are not eligible except for professionals such as doctors, accountants, lawyers or other professional categories acceptable to the HKMC.
Type of Property Properties under construction are not eligible for coverage (i.e. equitable mortgage loan not allowed)
Credit Internal credit check must be conducted and CIS or other external credit checks must also be conducted if the Insured are subscribers of CIS or other external credit agencies.
Maximum original term to maturity

 

25 years

Minimum original term to maturity

 

10 years

Maximum sum of "remaining term to maturity" and "age of property" at origination and throughout the term of the mortgage

 

 

40 years

Owner Occupancy At least one of the income-generating mortgagors/borrowers must occupy the Property as his/her primary residence.

The occupying borrower/mortgagor's income must be more than or at least equal to the monthly mortgage instalment payment.

 

Annex B

  1. ABN AMRO Bank N.V.
  2. AIG Finance (Hong Kong) Limited
  3. American Express Bank Limited
  4. Asia Commercial Bank Limited
  5. Bank of America (Asia) Limited
  6. Bank of China (Hong Kong) Limited
  7. Bank of Communications
  8. The Bank of East Asia Limited
  9. Chekiang First Bank Limited
  10. Chiyu Banking Corporation Limited
  11. Citibank, N.A.
  12. CITIC Ka Wah Bank Limited
  13. Dah Sing Bank Limited
  14. Dao Heng Bank Limited
  15. DBS Kwong On Bank, Limited
  16. First Pacific Bank Limited
  17. Fortis Bank Asia HK
  18. GE Capital (Hong Kong) Limited
  19. Hang Seng Bank Limited
  20. The Hongkong Chinese Bank, Limited
  21. The Hongkong and Shanghai Banking Corporation Limited
  22. Inchroy Credit Corporation Limited
  23. Industrial and Commercial Bank of China (Asia) Limited
  24. International Bank of Asia Limited
  25. Liu Chong Hing Bank Limited
  26. Nanyang Commercial Bank Limited
  27. Orix Asia Limited
  28. Overseas Trust Bank Limited
  29. Shanghai Commercial Bank Limited
  30. Wing Hang Bank Limited
  31. Wing Lung Bank Limited
Last revision date: 1 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery