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Raising the cap on the value of properties under the Mortgage Insurance Programme is aimed at helping first-time homebuyers who have enough income to repay the mortgage loan but lack the funds to pay the first lump sum.

Chief Executive Carrie Lam made the statement today at a press conference to elaborate on measures in the Policy Address.

Mrs Lam proposed in her policy speech that the cap on the value of properties eligible for a mortgage loan of maximum cover of 90% loan-to-value (LTV) ratio under the Mortgage Corporation Insurance Limited’s insurance programme be raised from $4 million to $8 million.

For properties eligible for a mortgage loan of maximum cover of 80% LTV ratio, the cap on its value will be raised from $6 million to $10 million.

Mrs Lam said: “As far as the question on the mortgage insurance, the initiative attempts to help those first-time homebuyers who have enough income to support a property, to repay the mortgage loan, but they do not have enough money to pay for the first lump sum.

“Then they have this choice to get a higher level, through the insurance, to get a higher level of loan so that they could buy for their own use.“

The Chief Executive added the initiative would not pressure people into buying a home in a dropping market, thereby leaving them in a difficult financial situation.

“At the end of the day, buying a flat, buying a property in Hong Kong is a pretty important decision, so I am sure everyone will assess their own financial situation and come to a view.

“The Government’s role is really to provide choices, to provide facilitation, so that they will have a better opportunity to exercise their decision to get themselves a home in a particular sort of situation.”