HKMC Insurance Limited (HKMCI), a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited (HKMC), announces today that the following amendments will be made to the Mortgage Insurance Programme (MIP) for completed residential properties, in order to provide assistance to homebuyers with immediate housing needs:
Please refer to the Annex for the amendment details. The amendments will take immediate effect from 16 October 2019 (Wednesday).
The MIP is a market-based financial product which operates with its risks managed by setting relevant eligibility criteria and premiums. The HKMCI monitors the need for amending the programme in response to market changes and customer demand, taking into account potential impact on the property market. As influenced by the recent external and domestic factors, the property market sentiment has become more subdued. In light of this, the HKMCI believes that it can provide more solid support to homebuyers by raising the maximum property values of the MIP.
HKMC Insurance Limited
16 October 2019
1 The maximum property values under the existing MIP arrangement remain applicable for all residential properties, including properties under construction.
2 All mortgagors are not holding any residential properties in Hong Kong at the time of applying for mortgage insurance.
3 Similar to existing MIP arrangement, if an applicant is holding or guaranteeing one or more outstanding mortgages when he/she applies for the MIP, the maximum DTI ratio has to be lowered.