Focus on high risk mortgage or through a number of pressuring banks
Hong Kong Wen Wei Po news (reporter Ouyang Wei Fang) developers launched into several high mortgage attract customers, the HKMA cause concern. HKMA Deputy Chief Executive Arthur Yuen yesterday in "The thinking," the author, referring to the Bureau noted that the developer mortgage loans to grow exponentially in the past year, though not the HKMA regulatory developers, but some bank financing to developers, indirectly increase the bank potential credit risk. The HKMA has been communication with the bank and examine the need to introduce measures to strengthen risk management. He also reminded prospective buyers, when home mortgages from five areas of risk assessment.
Arthur Yuen in the article pointed out that the development of mortgage plans and offers a wide variety of providers, including providing prices up eight Jiucheng, and even 95% of the mortgage loans; and let buyers mortgage existing properties, then provide an additional bridging loans, the total loan amount even more than the new building prices; there are the first two to three years for the concession period, interest-free for the buyer free, or simply pay a small amount of money, before the expiry of preferential prices for full payment to complete the transaction ; in addition, there are buyers without going through a stress test for the ability to repay, even without any income proof.
The rapid growth of real estate mortgage loans
He said that although the development of the existing mortgage loan provided by comparison with the overall bank balance of residential mortgage loans, the ratio is still relatively low, but also notes that individual developers over the past year, the rapid growth of mortgage lending in multiples of relevant issues the HKMA has aroused concern.
Arthur Yuen believes that home is a major decision in life, mortgage payment period of up to two to three decades, even if short-term deals may seem attractive to prospective buyers should also consider the variables that may arise in the future, assess their repayment ability to make informed and prudent decision.
Buyers to assess selfBody repayment ability
He listed five questions for prospective buyers to do a self-assessment include: When the fall in property prices, a high number of mortgaged property market is likely lower than the mortgage balance, negative equity, the presence or absence of this mental preparation? When Free for interest-free or low interest after the offer period ends, to the bank for a mortgage, "the Club", according to the latest valuation of the banks could not spare the mortgage, there is no additional funding to complete the transaction? After the promotional period, developers will charge higher interest on the face of the market into the rate hike cycle, there were enough in the future to cope with the budget for the sharp rise in the amount of?
In addition, part of the exchange floor for passenger mortgage mortgage providers need to develop existing properties, such as unsold existing properties during the transition period, considering whether the prospective purchaser, if the plan could not sell existing properties during the transition period needed bear the risk of decline in value of the two properties at the same time? There is, as a result of prospective buyers of the bank stress tests is less than or income proof and switch to the developer offers, whether at the time of the conclusion of preferential affirmative by bank stress tests or submit sufficient proof of income?
Arthur Yuen spoke HKMA oversees Hong Kong banking sector, although not regulatory developers, but because banks provide financing to some developers, developers to provide mortgage loans will indirectly increase the potential risk of bank credit to home buyers. The HKMA considers that the development of concern, and has been communication and research whether there need to introduce appropriate measures to strengthen banks to provide financing to a high number of mortgage contractor developer on risk management and banking.