The Mortgage Corporation has introduced a new mortgage product with a 75% loan-to-value ratio and enhanced the risk-based pricing and loyalty discount schemes under the Mortgage Insurance Programme.

The new arrangements will apply to programme applications drawn down on or after August 29.

Corporation Chief Executive Officer James Lau said the new initiatives will help make the range of products under the programme more complete. It will also help to attain a better differentiation in the borrowers' credit quality, to the benefit of the market as a whole.

Lower premium levels

The corporation said the 75% loan-to-value ratio product's attractiveness lies in the lower premium levels compared to the higher loan-to-value ratio products. 

For the risk-based pricing scheme, the maximum premium discount for a loan with loan-to-value ratio up to 85% will be increased from 20% to 25% of the gross premium. The arrangement will also be extended to the 90% loan-to-value ratio product with a maximum discount of 15%.

With the loyalty discount scheme, repeated Mortgage Insurance Programme users with previous loans maintained for an aggregate of more than three years with a punctual repayment record, the maximum premium discount will rise from 15% to 20%.

For details, call 2536 0136.