HKMA Insurance Update Tutorial 2022 20230222 update en

Required documents for Regular salaried employee of borrower and guarantor

  1. Copy of Hong Kong Identity Card/ Passport
  2. The latest proof of home address
  3. Prelim (Preliminary Agreement for Sale and Purchase)
  4. Bank payroll account record for the past six months
  5. Salary proof for the past six months / payroll slip (showing salary deposits and with company name)
  6. Latest tax demand note
  7. Latest employer’s return/ Employer’s letter
  8. Record showing mortgage loan installments for the past six months and latest loan repayment schedule (For Refinancing Mortgage)

Reminder for Mortgage Insurance Programme

  1. Eligible Property: Residential properties

  2. Borrower Type: Personal Customers

  3. Use of Property: Owner-occupied

  4. LTV ratio above 80%: applicant(s) should be regular salaried first-time homebuyers

  5. Debt-to-Income ratio (DTI): The limit on DTI of the total monthly repayment amount for the borrower should not exceed 50% of total income per month, and banks should stress-test mortgage applicants’ repayment ability, assuming an increase in mortgage rates of at least three percentage points, and limit the stressed DTI to a cap of 60%.

  6. Premium rates: Single and annual premium payment option, no premium refund arrangement under annual premium payment option.

  7. Relationship between Guarantor and Borrower: Must be the immediate family member or fiancé of Borrower or Mortgagor，and at least one of the income-generating borrower/ mortgagor/ guarantor use the property as primary residence.

  8. The sum of age of borrower and loan tenor: Bank will usually specify that the sum of age of borrower and loan tenor should not exceed 75 years, while loan tenor should not exceed 30 years.

  9. The sum of property age and loan tenor: Bank will usually specify that the sum of property age and loan tenor should not exceed 75 years, while loan tenor should not exceed 30 years. (Remarks：For Village House Mortgage, the maximum sum of “Original/ Remaining Term To Maturity” and “Age of Property” should not exceed 55 years , while loan tenor should not exceed 30 years.)