Hong Kong Mortgage Corporation chief hints at price rises in risky property market
Head of Mortgage Corporation hints at review of prices to manage firm's exposure to volatility
Homebuyers may have to pay more for mortgage insurance because the leading provider, the Hong Kong Mortgage Corporation, is looking to offset its risk in guaranteeing their loans in a risky property market where prices remain at near-record highs.
Its chief executive, Raymond Li Ling-cheung, did not rule out yesterday the possibility of price increases in its mortgage insurance programme.
The government-owned firm has previously revised its programme to manage exposure to volatility in the market, he said.
"I see the risk is still at a high level, and we are more concerned about risk exposure than the volume of our business," Li said at a news conference to present the corporation's results for last year.
There had been a slight improvement in property market risk after the government introduced fresh cooling measures in February, but he remained cautious in view of the high prices.
Property prices have increased far more than people's incomes in recent years, making homes less affordable to most.