The Mortgage Corporation has refined its Mortgage Insurance Programme's insurance eligibility criteria to enhance its risk management in view of the recent spike in high-end residential property prices.

The maximum mortgage loan size will be lowered to $12 million for mortgage loans with Mortgage Insurance Programme coverage from 70% to 90% loan-to-value ratio, to $6 million for those with coverage from 70% to 95%, and to $6 million for those with coverage from 60% to 90%.

The changes will apply to applications with provisional sale and purchase agreements signed from October 24. For applications with agreements signed before the date, the applications to the programme's participating banks must be submitted by November 23 if the buyers wish to seek insurance under the existing ceilings.

The changes will also apply to the products under the Fixed Adjustment Rate Mortgage Programme announced October 21. Non owner-occupied properties will be suspended from coverage under the mortgage insurance programme for the time being.

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