Hong Kong HOS mortgage guarantee extended to 50 years

Mortgage regulations and application requirements for Hong Kong's Home Ownership Scheme (HOS) and Green Form properties have seen significant updates. As of March 1, 2024, the government guarantee period for HOS, Green Form, and rental scheme units has been extended from 30 to 50 years, with maximum repayment terms increasing from 25 to 30 years.

For new HOS units, Green Form buyers can access up to 95% mortgages, while White Form buyers are eligible for up to 90%. For secondary market HOS units without land premium payment, the maximum mortgage percentage decreases as the property age increases: up to 95% or 90% within the first 40 years of the guarantee, dropping to 80% between years 40 and 50, and approximately 70% once the 50-year guarantee expires.

Prospective buyers should also be aware of hidden complexities in income assessments. Banks typically use the cap rate for H起来-rate mortgages or the interest rate applicable after a fixed-rate period ends to calculate the debt-to-income (DTI) ratio. Currently, the DTI limit is unified at 50% of total income.