Hong Kong - Too Difficult To Own A Home

Mortgage schemes in Hong Kong are not very helpful for new home buyers:

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Hong Kong is one of the world’s most expensive property markets and owning a home there is near to impossible for a majority of the residents. Many first-time homebuyers in the special administrative region of the People’s Republic of China are struggling to finance their dream homes. Most of the time, they are unable to meet the 30% down payment threshold set for mortgage financing because of the ever-rising prices of property and the increases of other expenses associated with homeownership. There is also the practice that a homebuyer can provide 10% as the minimum deposit percentage, but this small deposit will require the person to provide an extra premium to the Hong Kong Mortgage Corporation along with a proof that he has the ability to repay the mortgage finance advanced; this is applicable to people who purchase homes whose value is HK$4 million or less. It is difficult to find a good home priced at that amount. However, the person can negotiate a middle ground and get an exclusive offer to make 20% down payment, but this will also require him to provide an insurance cover as well as proof of sustainable income. This leads the person to the option of the 30% down payment but as the property prices soar, this amount becomes increasingly expensive to afford.