We propose a “Principal Payment Holiday Scheme” for HOS flat owners

2020.04.09

The COVID-19 outbreak continues and the economic downturn in Hong Kong heavily affects residents’ livelihood especially those who are paying off mortgages. Many banks offer “principal payment holiday scheme” and streamline related procedures and shortened vetting and approval time to alleviate the pressure faced by mortgage clients.

Wilson OR says that recently many HOS flats owners complained that they are not eligible for these principal payment holiday schemes. Wilson OR learned from the Hong Kong Monetary Authority (HKMA) and Housing Authority (HA) that HOS flats owners are not eligible to join because banks are restricted by two major terms in mortgage default guarantee: the default guarantee period of mortgage and the monthly principal repayment. About 70,000 owners of subsidized sale flats, including the Green Form Subsidised Home Ownership Scheme and Tenants Purchase Scheme, are not able to join these principal payment holiday schemes.

Horace CHEUNG who has assisted these owners points out that the HA and HKMA should provide assistance in a flexible manner. He suggests the HA to provide a declaration document or some other way of ensuring that the agreement reached between banks and the HOS owners on principal payment holiday schemes will not violate the mortgage default guarantee between the HA and banks. These schemes then become available to HOS owners in desperate need. Finally, Wilson OR reiterates that the DAB team will follow up on this issue and urges the HA,HKMA and banks to keep restrictions to a minimum to benefit more home owners.

Media Inquiries:

DAB Legislative Councilor Horace Cheung (9681 8757)、Wilson Or (9266 1035)

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