Hong Kong’s Banking Regulation vs. The US
We could really learn something from them. “During the whole period from mid-1997 to 2003, when home prices fell by two-thirds, the available data show that no more than about 1.4% of all mortgage borrowers here fell delinquent on their payments by three months or more.”
Could that be because their loan to values are at 70%, meaning you have to put down 30%? I would certainly so say. You are a lot less likely to walk away from something that you have money invested in. Here is another reason, “As in many other parts of the world, a homeowner who defaults on a mortgage loan in Hong Kong doesn’t just risk losing the home; the borrower’s bank savings and other assets are fair game, too.”
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