Expansion of Mortgage Insurance Programme (MIP)

The Hong Kong Mortgage Corporation Limited (HKMC) announced today (Tuesday) an expansion in the Mortgage Insurance Programme (MIP). The loan size ceiling for mortgage loans on properties under construction (equitable mortgage loans) covered under the Programme will be increased from HK$5 million to HK$8 million with a loan-to-value (LTV) ratio up to 85%.

The MIP was launched in March 1999 with the aim of promoting home ownership in Hong Kong. The Programme currently covers equitable mortgage loans up to a LTV ratio of 90% for a maximum loan size of HK$5 million. At 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. The HKMC will accept applications for the new product with effect from 19 November 2002. Interested homebuyers may contact one of the banks listed in Annex B or visit the HKMC's website at www.hkmc.com.hk.

The Hong Kong Mortgage Corporation Limited
19 November 2002