Home Purchase Loan Scheme

The Home Purchase Loan Scheme was introduced in 1988 to help lower-
and middle-income families buy flats in the private sector. In 1997, 3 647
families benefited from the scheme. About 52 per cent of these families
were public housing tenants who surrendered their rental flats for
reallocation.

Eligible applicants are offered an interest-free loan, repayable over the
same period as the bank mortgage on the property, up to a maximum of
20 years. Alternatively, they may opt for a monthly subsidy for 48
months, which need not be repaid.

The loan and monthly subsidy given to public rental tenants were
$600,000 and $5,100 respectively, while those for private sector
applicants were $400,000 and $3,400 respectively. So far, 20 048 loans
and 1 282 subsidies have been granted. As a result, 11 914 public rental
flats have been recovered.

[Back] [Forward]