"PRH Buyers Must Read!" Key Information on Housing Loan for Public Rental Housing Units Revealed!

Understanding the Maximum Mortgage Loan-to-Value Ratios and Repayment Periods for Green and White Form PRH Units

Public Rental Housing (PRH) is a form of subsidized housing provided by the Hong Kong SAR government to its citizens, and mortgage loans are one of the main ways to purchase PRH units. The mortgage loan-to-value (LTV) ratios and repayment periods for PRH units are important factors for buyers to consider. Here is some basic information about PRH mortgage loans to help you better understand.

Firstly, according to the regulations of the Housing Authority, PRH mortgage loans can be classified into two types: Green Form PRH and White Form PRH. Green Form PRH refers to new PRH units without land premium, while White Form PRH refers to second-hand PRH units with land premium.

For Green Form PRH units, no stress test is required according to the government's guarantee. In addition, the maximum LTV ratio for Green Form PRH units is higher than that for private residential properties. Specifically, the maximum LTV ratio for a first-hand Green Form PRH unit can reach 95%, with a repayment period of up to 25 years. For second-hand PRH units without land premium (PRH Resale Market), the maximum LTV ratio is also 95%, but the repayment period is shorter, only 25 years. For second-hand PRH units with land premium (Free Market), the maximum LTV ratio is 80%-90% (through mortgage insurance), with a repayment period of up to 30 years.

As for White Form PRH units, the maximum LTV ratio is relatively lower than that for Green Form PRH units, but still higher than that for private residential properties. Specifically, the maximum LTV ratio for a first-hand White Form PRH unit is 90%, with a repayment period of up to 25 years. For second-hand PRH units without land premium (White Form Resale Market), the maximum LTV ratio is also 90%, but the repayment period is shorter, only 25 years. For second-hand PRH units with land premium (Free Market), the maximum LTV ratio is 80%-90% (through mortgage insurance), with a repayment period of up to 30 years.

In general, the LTV ratios and repayment periods for PRH mortgage loans are relatively higher than those for private residential properties, but buyers still need to pay attention to their personal financial situation and repayment ability to avoid excessive financial burden.

In addition to LTV ratios and repayment periods, other loan terms, such as repayment methods and interest rates, should also be noted. The interest rate for PRH mortgage loans is generally lower, but it is still necessary to compare the loan conditions of different banks carefully to choose the most suitable loan plan.

Finally, when choosing a PRH mortgage loan, it is important to pay attention to the relevant regulations of the government and banks, as well as your personal financial situation and repayment ability, to ensure that you can afford the mortgage loan and reduce financial pressure.

In summary, PRH mortgage loans are one of the main ways to purchase PRH units, and the LTV ratios and repayment periods are important factors that buyers need to consider carefully. We hope that the information provided in this article can help you better understand the basic knowledge of PRH mortgage loans and make wise choices.