The Mortgage Insurance Programme was introduced by the Hong Kong Mortgage Corporation Limited (HKMC) in 1999 to assist home ownership in Hong Kong by allowing a purchaser to obtain a mortgage loan over 70% of the value of the mortgaged property without increasing the credit risk of the mortgagee bank. The programme provides mortgage insurance cover to banks in respect of the portion of the loan that is over 70% of property value.

Eligibility for mortgage insurance

The Mortgage Insurance Programme is applicable to private, owner-occupied residential properties. The programme enables the bank to lend up to 95% of the value of the property depending on the loan size and is applicable to mortgage loans up to HK$12,000,000. For a brief guide to eligibility criteria and premium, see Appendix 2.

Since 7 December 2004, HKMC has expanded the Mortgage Insurance Programme to cover cash-out refinancing mortgages with a maximum loan-to-value ratio of 90% and a maximum loan size of HK$5,000,000.