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URA Response Statement to Announcement by HKMC for Rehabilitated Buildings Loan Mortgage

In response to media enquiries, the Urban Renewal Authority (URA) today (Tue) issued the following statement:

The URA welcomes a decision by the Hong Kong Mortgage Corporation (HKMC) to extend its Mortgage Insurance Programme to cover buildings rehabilitated under the two rehabilitation schemes of the URA. This provides a further incentive for owners of old buildings to undertake voluntary rehabilitation work to improve and upgrade their living environment and help alleviate the problem of urban decay.

A URA spokesman said this was another positive step in an on-going concerted community effort by the building owners, the URA, the financial community professional organisations and property agencies to rehabilitate not only the buildings but also the transaction market for them. Earlier, a total of 13 banks have announced more attractive mortgage terms for rehabilitated buildings, such as loan quantum up to 70 per cent of the valuation of the flat, longer repayment period and a more preferential interest rate. The banks are the Bank of China, Bank of Communications, Bank of East Asia, CITIC Ka Wah Bank, Dah Sing Bank, Hang Seng Bank, HSBC, Liu Chong Hing Bank, MEVAS Bank, Nanyang Commercial Bank, Standard Chartered Bank, Wing Hang Bank and Wing Lung Bank.

The URA currently provides two rehabilitation schemes, namely a Building Rehabilitation Trial Scheme and a Building Rehabilitation Loan Scheme. The spokesman said that the schemes have met with good response from residents living in old buildings. "Since October last year, a total of 71 buildings, involving over 7,000 units, have already benefited under the schemes and the number is still growing steadily," he said.