LCQ8: Arrangement for approving property lettings under Mortgage Insurance Programme
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Question:
In order to help homeowners under the Mortgage Insurance Programme (MIP) meet their special needs arising from changes in personal or family circumstances, the HKMC Insurance Limited (HKMC) announced in August last year a new arrangement, in which a waiver of the owner occupancy requirement under MIP will be granted, on a case-by-case basis, to an eligible homeowner applying for renting out the property subject to the fulfilment of one of the following three conditions: (i) the homeowner's family is expecting newborn(s) or adopting child(ren), resulting in a change in housing needs; (ii) the homeowner has become unemployed and requires more flexible housing or financial arrangements; or (iii) the homeowner has other special needs to rent out the property, and has been residing in the relevant property for not less than 12 months. In addition, homeowners whose applications are approved will be subject to undertakings that so long as the waiver is in effect, they or their spouses or cohabitants who are also obligors under the MIP should not purchase any additional residential properties in Hong Kong. In this connection, will the Government inform this Council:
(1) whether it knows the respective numbers of applications received and approved for waiver of the owner occupancy requirement by HKMC on the basis of the conditions (i), (ii) and (iii); and
(2) whether consideration will be given to the enhancement of the existing arrangement to provide further assistance to homeowners under MIP who wish to seek alternative accommodation by waiving their restriction on purchasing additional residential properties in Hong Kong for a period of up to 12 months, so as to give them a window of time to dispose of their properties under MIP upon acquisition of new properties; if not, of the reason for that?
Reply:
President,
The Mortgage Insurance Programme (MIP) is administered by the HKMC Insurance Limited (HKMCI) for promoting home ownership in Hong Kong. In August 2024, the HKMCI put in place a new arrangement under the MIP to approve on a case-by-case basis eligible homeowners' applications for renting out their self-occupied properties, so as to help them meet their special needs arising from changes in personal or family circumstances (new arrangement).
After consulting the HKMCI, our reply to the two parts of the question is as follows:
(1) As of end-June 2025, the HKMCI has received about 1 800 applications for the new arrangement. Among them, 1 697 applications were approved, while the remaining applications were either rejected for not meeting the eligibility requirements or are under processing. The breakdowns of the applications approved are as follows:
| Reason for application | Number |
| The homeowner's family is expecting newborn(s) or adopting child(ren), resulting in a change in housing needs |
336 (20%) |
| The homeowner has become unemployed and requires more flexible housing or financial arrangements |
41 (2%) |
| The homeowner has other special needs to rent out his/her property, and has been residing in the relevant property for not less than 12 months |
1 320 (78%) |
| Total | 1 697 (100%) |
(2) As the aim of the MIP is to promote home ownership, the owner occupancy requirement remains a key eligibility criterion of the MIP. The new arrangement is an exceptional measure that seeks to assist those with special needs. In fact, the MIP by nature is an insurance product, with credit risk being one of the key factors of consideration. If homeowners who have been given consent to rent out their properties under the MIP are allowed to purchase additional residential properties without having sold their existing ones, it is likely for the respective homeowners to take on extra financing liabilities on top of their current high loan-to-value ratio mortgage loans. This will bring additional credit risk to the MIP.
The new arrangement has been launched for around one year and operating smoothly, offering substantial assistance to homeowners with special needs. The HKMCI has no plan to make changes to the new arrangement at the moment, and will keep the MIP under review from time to time in the light of the market circumstances.
Ends/Wednesday, July 9, 2025
Issued at HKT 12:15
Issued at HKT 12:15
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