Homebuyer prudence urged

2019-10-18 04:45:12

(To watch the video with sign language interpretation, click here.)

Secretary for Transport & Housing Frank Chan has called on prospective homebuyers to assess their affordability when deciding to purchase a property.

He made the appeal at a press conference today to elaborate on the initiatives in the Chief Executive's 2019 Policy Address.

The Chief Executive has proposed to raise the cap on the value of properties under the Mortgage Corporation Insurance Limited's Mortgage Insurance Programme.

The cap on the value of properties eligible for a mortgage loan of maximum cover of 90% loan-to-value ratio will be raised from $4 million to $8 million for first-time home buyers.

Mr Chan said: ?We have to take it rather seriously. It is not like buying a piece of cake off the shelf. Therefore, affordability and need would have to be considered very carefully.

?The mortgage ceiling is just one of the many factors that would affect the price of a piece of property. The global economy, local employment, and supply and demand - all these would come into play."

?I would say that the raising of the ceiling, for those who are first-time buyers of a property, would give them an avenue to acquire equity, to purchase a property on top of what they could have saved over a long period of time.?

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