About MIP

LTV ratio could be up to 80% when applicant fulfills the following requirements under MIP:

• Income is mainly derived in Hong Kong
• Property is for self-use purpose
• Construction of property is already completed

According to the guideline issued by the Hong Kong Monetary Authority, banks have to comply with loan-to-value (“LTV”) requirement on owner-occupied residential mortgage lending. Yet, with the MIP providing mortgage insurance to banks, banks can provide mortgage loans with higher LTV ratio without incurring additional credit risk. As long as an application meets the relevant eligibility criteria (e.g. the maximum property value and the maximum loan amount, etc.), the bank can provide a mortgage loan of up to 80% LTV ratio under the MIP. In other words, homebuyers may only need to pay 20% of the property price for the down payment, which greatly reduces their down payment burden.