Hong Kong banks worry about risk of easier mortgage rules as recession takes hold

The Business Times | Nov 14, 2019 at 12:00 AM
  • Even as Hong Kong has reduced down-payment requirements to help young professionals and families to buy homes, banks are beefing up mortgage application standards to ensure that a recession does not saddle them with bad loans.
  • Some banks in Hong Kong have raised interest rates for new mortgages twice since August by a total of 25 basis points, even as they cut their best lending rates recently for the first time since the global financial crisis.
  • Hong Kong’s home prices fell 4.1 per cent from June to September, but are still up 5.9 per cent this year.