Hong Kong will relax mortgage rules to help first-time home buyers

Native Hong Kong resident Eunice Wai, 30, a primary school teacher, who lives with her parents and a brother, poses for a picture in her 7.4 sq metre bedroom of her family's apartment in Hong Kong, China, June 25, 2019. Wai explained how Hong Kong people felt stifled by Beijing: "They control people more and give us less freedom." But she said other problems made life increasingly difficult, in particular what she said was an unfair housing policy that only seemed to make the rich richer. "Housing is one of the most important ones. We have so little room in Hong Kong and people find it hard to buy a flat. The property companies control the market." REUTERS/Thomas Peter

HONG KONG: Hong Kong’s Chief Executive Carrie Lam said the government will relax mortgage rules to help first-time home buyers break into the world’s least-affordable real estate market.

The government plans to allow purchasers to borrow up to 90% of a property’s value to a maximum of HK$8 million ($1 million), from HK$4 million previously. That means first-time home buyers will be able to buy more expensive homes with a down payment of just 10%.