The non-residential mortgage ratio has been relaxed from 40% to 50%
Under the impact of the epidemic, the prices of industrial and commercial stores and other properties have fallen sharply, and the HKMA has "reduced spicy food and rescued the market." The number of mortgages for non-residential properties has been relaxed today. The general case has increased from a maximum of 40% to 50%, covering shops, stratified factory buildings, office buildings and independent parking spaces, etc. This is after the Monetary Authority launched several rounds of the property market since 2009. Reduce spicy for the first time. The Hong Kong Monetary Authority stated yesterday that it did not decide the extent of the price reduction based on the decline in property prices, and emphasized that there is no “red line” of decline. Instead, considering many factors, it believes that there is room and conditions to relax mortgages for non-residential properties; it also refers to transactions in the residential market. Prosperous, the current property prices are only down 2.7% from last year's high, and there is no condition to reduce spicy food. ■reporter Ma Cuimei
Under the new measures, the maximum mortgage ratio for non-residential properties will be increased by 10 percentage points based on the earlier applicable upper limit. Under normal circumstances, if the applicant's main income is from Hong Kong and there is no other mortgage, the upper limit of the mortgage ratio for non-residential properties will be raised from 40% to 50%, and the upper limit for applicants with mortgages will be raised from 30% To 40%. If the applicant’s main income is not derived from Hong Kong but does not have other mortgages, the upper limit of the mortgage percentage for non-residential properties will be raised from 30% to 40%, and for applicants with other mortgages, the upper limit will be raised from 20% to 40%. 30%.
Industrial and commercial shops are greatly affected by the economic environment
For example, if the applicant’s main income comes from Hong Kong and does not have other mortgages or guarantees, the maximum loan amount can be increased from 4 million to 5 million HKD if the applicant has no other mortgages or guarantees. If you buy a shop of 10 million yuan, the loan amount can be increased from 3 million HKD to 4 million yuan. Of course, the mortgage also needs to pass the payment-to-income ratio and stress test. Monetary Authority President Yu Weiwen said yesterday that the epidemic has put a lot of pressure on the local economy. Although the residential property market has remained stable, he has noticed significant adjustments in the prices and transaction volume of different types of non-residential properties. In view of the epidemic and rising geopolitical tensions Will continue to affect business confidence. The non-residential property market is expected to continue to be under pressure. Taking into account the price trend of non-residential properties, trading volume, economic fundamentals and the external environment, the HKMA believes that it is appropriate to relax the restrictions applicable to non-residential properties. Countercyclical macro-prudential supervision measures.
No "red line" for property price decline
Statistics from the Bureau of Estimates and Estimates show that in June, the prices of office, stratified industrial and retail properties in Hong Kong fell by about 10% to 15% from last year's high; residential property prices in the same month fell by 2.7% from last year's high.
Nguyen Guoheng, vice president of the Monetary Authority, said at the press conference yesterday that the increase in the ceiling of mortgage loans for non-residential properties is one of the prudential easing measures of the Monetary Authority, which aims to alleviate the resistance of banks in handling mortgages. The authority does not expect the new measures to be released. How much money. He clarified that the bureau did not set a "red line" for the decline in property prices, and that the measures to reduce the severity of the price did not trigger the mechanism because of the decline in property prices. He also revealed that the current mortgage applicants have a good repayment ability, and there is no hearing of non-residential property borrowers having repayment ability problems.
Residential prices are hard to sell
As for whether the public is most concerned about whether it will reduce the hotness of residential properties? Chen Jinghong, Assistant President (Banking Supervision) of the Monetary Authority, responded yesterday that although property prices in Hong Kong are affected by the epidemic, the current residential property market prices are still at a high level. According to the Bureau of Valuation and Valuation, the residential price index in June only fell from the high in May last year. 2.7%, and residential property transactions in the first half of this year increased by 8% compared to the second half of last year. Therefore, I believe it is not appropriate to adjust the macro-regulatory measures for residential mortgage loans. However, he emphasized that the bureau will closely monitor the market conditions.
The HKMA also issued new mortgage guidelines to the banking industry yesterday, and reiterated in the circular that the new measures were originally intended to apply to mortgage loans related to property sales and existing property re-mortgage loans, and not to companies that use them to raise working capital. Credit facilities obtained by using properties as collateral must meet a comprehensive set of credit approval standards and be subject to regular review by authorized institutions.
Bank of China Hong Kong said yesterday that it welcomes and fully cooperates with and supports the HKMA’s relaxation of countercyclical macro-prudential supervision measures on mortgage loans for non-residential properties. It believes that the new measures will help increase the confidence of enterprises and investors in the local business environment. Guidelines and regulations to handle mortgage applications for customers.
