| From 11 June 2011, the HKMC has lowered the cap on the value of property that can be covered under the Mortgage Insurance Programme (MIP) from HK$6.8 million to HK$6 million. As a result, for mortgage loans with MIP cover starting from 70% loan-to-value (LTV) threshold, the maximum loan amount will be reduced from HK$6.12 million to HK$5.4 million. Meanwhile, for mortgage loans with MIP cover starting from 60% LTV threshold, the maximum loan amount will be reduced from HK$6 million to HK$5 million. In addition, the MIP will not be available to applicants whose income is derived mainly from outside Hong Kong unless they can demonstrate that they have a close connection with Hong Kong (Note). This change is adopted to take account of the prudential measures for residential mortgage loans announced by the Hong Kong Monetary Authority. Note: For the purpose of processing MIP applications, any application with applicant(s) currently working outside Hong Kong (hereinafter "Overseas Income Applicant(s)") and contributing over 50% of the verified household income (of the application) will not be accepted unless the applicant can provide any one of the following documents:
1. Justification with documentary proof, subject to the HKMC's satisfaction, showing the employment relationship of the Overseas Income Applicant and a local employer;
2. Declaration from the Overseas Income Applicant confirming his/her immediate family member (spouse, parents and descendants only) is residing in Hong Kong.
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