The Hong Kong Mortgage Corporation Limited (HKMC) today (Tuesday) announced the launch of the Premium Loan Insurance Scheme (PLIS) in collaboration with eight banks to help owners of subsidised housing properties who are aged 50 or above to settle land premium payment.
The HKMC held a launch ceremony for the PLIS today with the attendance of representatives from participating banks, supporting organisations and the media. The eight participating banks include Bank of China (Hong Kong), Bank of Communications Hong Kong Branch, Hang Seng Bank, Nanyang Commercial Bank, OCBC Wing Hang Bank, Shanghai Commercial Bank, The Bank of East Asia and Wing Lung Bank.
The launch ceremony was officiated by the Chief Executive Officer of the HKMC, Mr Raymond Li. “The PLIS provides owners of subsidised housing properties with an additional financing option to settle the land premium and hence removes alienation restriction if they wish to sell or let their flats in the open market. I believe the scheme can help release some under-utilised flats and promote the market circulation of subsidised housing properties,” Mr Li said.
Under the PLIS, borrowers will be granted loans against their subsidised housing properties as security for settling land premium payment to the Hong Kong Housing Authority (HA), Hong Kong Housing Society (HS) or the Government. The PLIS currently covers subsidised housing properties under the Home Ownership Scheme, Private Sector Participation Scheme and Tenants Purchase Scheme of the HA, and the Flat-For-Sale Scheme and Sandwich Class Housing Scheme of HS.
In general, the borrower will not need to repay his PLIS loan during his lifetime as long as he continues to own the property. The primary purpose of the PLIS lump-sum payout is to settle land premium payment. In addition, the lump-sum payout can be used for specific purposes such as repayment of an existing mortgage on the property and payment for repair and maintenance of the property. The borrower may partially or fully repay the outstanding loan amount, and there is no penalty for such repayment. Upon the borrower’s death or termination of the PLIS loan, the borrower or his inheritors will have the first right to redeem the property by repaying the bank in full the outstanding loan amount of the PLIS loan within a specified period.
The PLIS will start receiving applications today. The HKMC will partner with the participating banks to organise a series of promotional activities to introduce the PLIS to subsidised flat owners, such as advertising and marketing activities in selected properties.
Leaflet and information pack of the PLIS are available on the HKMC website (www.hkmc.com.hk). For enquiries, please call the PLIS hotline at 2536 0136.
The Hong Kong Mortgage Corporation Limited
15 September 2015
The HKMC collaborates with eight banks to launch the PLIS, helping owners of subsidised housing properties to settle land premium payment. The Chief Executive Officer of the HKMC, Mr Raymond Li (centre), today officiates at the launch ceremony of the PLIS.
The Chief Executive Officer of the HKMC, Mr Raymond Li, believes the PLIS can help release some under-utilised flats and promote the market circulation of subsidised housing properties.
The Chief Executive Officer of the HKMC, Mr Raymond Li (centre), is pictured with the representatives of the PLIS’s eight participating banks.