October 21, 2009
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<Snap your dad’s face>
When HKMA, on behalf of government, is trying to cool down the property market – tightening the loan-to-value ratio from a maximum 70% to 60%, HKMC – the son of HKMA – has just extended its fixed mortgage loan program.
As both plans are ineffective anyway – banks are not lending 70% anyway and fixed mortgage program is not popular, the net-net both impact will be negligible.
But the symbolic meaning is more interesting. – your father is trying to tighten the purse; but your son just bought a psp, Wii and iPhone.
By the way, we all understand Mainland buyers do not need much mortgage for purchasing flats – they are cash-abundant. If the restriction on loan-to-value ratio is effective, particularly for curbing buying interests for local buyers, wouldn’t it be a policy that promotes the further “monetary invasion” of Mainland in Hong Kong?
