Government urges caution in relaxing mortgage policy

Opening the market to those with limited financial capability may lead to market upheavals.

The government urges caution on relaxing the mortgage ratio to help more people afford their own homes, according to a press release.

“Whether the Government should relax the mortgage ratio so as to help those who are able to make the mortgage service payment but may not be able to come up with a substantial down payment, we are very cautious about this because at this level the property price is (extraordinarily) high and the property market has been on the rise for quite a prolonged period,” Finance Secretary Paul Chan said to the media after attending a budget consultation forum. 

He added that opening up the market to those who have limited financial capability may cause unnecessary market upheavals who, in the extreme case of a housing correction, may be the hardest hit demographic. 

Chan added that the government will not relax its property cooling measures at this stage.