The maximum loan size for mortgages with a loan-to-value ratio of 95% under the Mortgage Insurance Programme will rise from $5 million to $8 million, the Mortgage Corporation says.

Since its launch on July 29, the 95% product has received very good market response. Up to November 17, more than 3,000 applications have been received, with over 80% coming from the secondary property market.

This demonstrates a strong market demand for higher financing. A number of banks have recently asked the corporation to extend the coverage of the 95% product to mortgages with loan size exceeding $5 million.

After consulting its approved reinsurers, the corporation has decided to increase the maximum loan size of the 95% product to $8 million. At present the maximum loan size for the 90% product can go up to $12 million.

The corporation will accept the 95% product applications with a loan size of up to $8 million from November 20. Interested homebuyers can approach their banks or call the hotline at 2536 0136 for further information.