HONG KONG, July 7 (Xinhua) -- The Hong Kong Monetary Authority (HKMA) on Friday issued guidelines to banks adjusting the countercyclical macroprudential measures for property mortgage loans, making homes more affordable.
This is the first time the HKMA has relaxed the countercyclical macroprudential measures for residential properties since they were implemented in 2009. After the adjustments, the public will be able to take out property mortgage loans at higher loan-to-value (LTV) ratios.
According to the HKMA, for residential properties for self-occupation, the maximum LTV ratios will be adjusted to 70 percent for properties valued at 15 million HK dollars (1.91 million U.S. dollars) or below, and 60 percent for properties with a value of more than 15 million HK dollars and up to 30 million HK dollars.
The maximum LTV ratio for non-residential properties will be adjusted from 50 percent to 60 percent.
The maximum LTV ratio for residential properties for self-occupation valued at more than 30 million HK dollars will remain unchanged at 50 percent. For non-self-use residential properties, the maximum LTV ratio will remain unchanged at 50 percent.
These adjustments will take effect from Friday.
Since the countercyclical macroprudential measures for property mortgage loans were implemented in 2009, the HKMA has been assessing conditions in the property market by monitoring factors, including property prices and transaction volumes, and the local and external economic environment. (1 U.S. dollar = 7.82 HK dollars) ■
