Re: Hong Kong Monetary Authority’s latest circular on property mortgage lending

The Estate Agents Authority (“EAA”) would like to draw all licensees’ attention to the press release made by the Hong Kong Monetary Authority (“HKMA”) on 23 September 2022 about its circular to banks on lowering the interest rate stress testing requirement for property mortgage lending.

According to the HKMA’s circular, the interest rate stress testing requirement for property mortgage lending is lowered from 300 basis points to 200 basis points and the adjustment applies to mortgage loans for all types of properties. The above adjustment has already taken place on 23 September 2022.

Licensees should note that they are required to exercise due care and due diligence in fulfilling their duties and must not provide inaccurate or misleading information to their clients. For details of the circular, please refer to the website of the HKMA (www.hkma.gov.hk).

(27 September 2022)