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TUESDAY, JUNE 8, 1993
SUBSTANTIAL
"IN ADDITION, MANY FIRST-TIME HOME BUYERS FIND THE
RATHER THAN THE MORTGAGE REPAYMENT, TO BE THE MAJOR
DOWNPAYMENT. PROBLEM.
"AS THE INTEREST ELEMENT USUALLY ACCOUNTS FOR THE GREATER PROPORTION OF MORTGAGE REPAYMENT IN THE FIRST YEARS, IT IS MORE COST- EFFECTIVE TO PROVIDE THE SUBSIDY UPFRONT SO THAT THE MORTGAGE REPAYMENT REQUIRED CAN BE REDUCED."
SUCCESSFUL APPLICANTS WILL BE PROVIDED WITH A LOW-INTEREST LOAN OF 20% OF THE SALE PRICE OF A FLAT AND UP TO A LIMIT OF $500,000.
THE VALUE OF THE PROPERTY PURCHASED BY THE BENEFICIARY SHOULD EXCEED $3 MILLION AND THE PROPERTY SHOULD BE LESS THAN 10 YEARS SO THAT THE BENEFICIARY MAY OBTAIN A MORTGAGE ON A REASONABLE PROPORTION OF THE PURCHASE PRICE.
NOT OLD
WITH AN
THE
THE REPAYMENT OF THE LOAN, IN 120 EQUAL INSTALMENTS ANNUAL INTEREST OF 2%, WILL ONLY BEGIN IN THE FOURTH YEAR WHEN BENEFICIARY'S FINANCIAL POSITION HAS IMPROVED.
TO AVOID CREATING A SUDDEN SURGE OF SIGNIFICANT DEMAND IN PROPERTY MARKET WHICH COULD WELL INFLATE PRICES, MR EASON SAID FIRST BATCH OF BENEFICIARIES WOULD NUMBER ABOUT 1,000.
"BUT
THE THE
WE WILL REVIEW THE TIMING AND NUMBER OF THE SECOND BATCH BY TAKING ACCOUNT RESULTS OF THE FIRST BATCH, HE SAID.
THE MAIN ELIGIBILITY CRITERIA FOR THE SANDWICH CLASS HOUSING LOAN ARE AS FOLLOWS:
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THE APPLICANT MUST HAVE HAD AT LEAST SEVEN YEARS CONTINUOUS RESIDENCE IN HONG KONG;
TOTAL FAMILY INCOME MUST BE WITHIN THE RANGE OF $20,001 $40,000 PER MONTH;
EACH APPLICATION MUST INCLUDE AT LEAST THREE FAMILY MEMBERS, PREFERENCE WILL BE GIVEN TO MARRIED COUPLE AND SINGLE PARENT (IN THAT ORDER) WHO HAVE TWO OR MORE CHILDREN;
EACH APPLICANT MAY ONLY SUBMIT ONE APPLICATION;
ALL PERSONS INCLUDED IN AN APPLICATION MUST NOT HAVE ANY DOMESTIC PROPERTY REGISTERED IN THEIR NAMES IN HONG KONG WITHIN THE 24-MONTH PERIOD IMMEDIATELY BEFORE AN APPLICATION IS SUBMITTED;
THE APPLICANT AND HIS FAMILY MUST BE LIVING IN PRIVATE DOMESTIC ACCOMMODATION;
RESALE OF A FLAT WITHIN THE FIRST THREE YEARS WILL ONLY BE PERMITTED UPON REPAYMENT OF THE LOAN IN FULL PLUS ANY GAIN IN PROPERTY VALUE.
/TO ENABLE