Stress Test 2024 | Latest News (February 28)
The Hong Kong Monetary Authority announced that it has made adjustments to the countercyclical macro-prudential regulatory measures and other related regulatory provisions for property mortgage loans, including modifying the mortgage loan ratios for owner-occupied residential and non-residential properties, and suspending the implementation of assumptions on property mortgage loans. Stress test requirement for interest rate increase of 2%.
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Stress Test 2023 Lazy Pack
What is a stress test?
"Stress testing" is a measure that the Hong Kong Monetary Authority required banks to implement in 2010. The purpose is to ensure that mortgage borrowers have sufficient financial capacity to continue repaying even if mortgage interest rates rise, thereby mitigating the risks of banks' mortgage loan business. manage.
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Under what circumstances is stress testing necessary?
Before 2019, all mortgage borrowers who want to buy a property must undergo a "stress test." However, in the 2019 policy address, the government officially abolished the stress test requirements for first-time homebuyers. First-time homebuyers only need to pass the income requirement to successfully buy a home. However, this does not mean that all banks will not perform stress test calculations internally. More conservative banks may still first evaluate whether the applicant can pass the stress test before approving a mortgage loan. Those who are not first-time homebuyers or those who already have other mortgages need to continue to undergo the "stress test".
Back to Table of Contents – Stress Test｜HOS Mortgage
Stress Test｜HOS Mortgage
I believe many people have doubts. Does applying for a HOS mortgage require a stress test? People applying for HOS mortgages have the government as their guarantor, so banks will be more lenient when approving HOS mortgages. Most HOS mortgages do not need to undergo stress testing.
Stress test calculation method
Taking a $1 million loan as an example, the mortgage interest rate is 2.875% and the mortgage term is 30 years. The required monthly payment is $4,149. If the contribution accounts for no more than half of the income, the monthly income of $8,298 can successfully pass the first level. To pass the "stress test", you need to increase the monthly payment by 2%, and the monthly payment becomes $5,292. The payment accounts for no more than 60% of the income. The monthly income needs to be $8,820 to pass the second level. .
| loan amount | $1 million |
| mortgage interest rate | 2.875 centimeters |
| Mortgage term | 30 years |
| monthly payment | $4,149 |
| Contributions as a percentage of income (income requirement) | $8,298 ($8,298 yuan X 50% = $4,149) |
| Contributions under stress test | $5,292 |
| Stress test (income requirement) | $8,820 ($8,820 X 60% = $5,292) |
Stress test monthly income requirements comparison table
Based on the longest payment period, the required monthly income is as follows:
| Loan amount ($) | Required monthly income ($) |
| 1 million | 8,820 |
| 2 million | 17,640 |
| 3 million | 26,460 |
| 4 million | 35,280 |
| 5 million | 44,100 |
| 6 million | 52,920 |
| 7 million | 61,740 |
| 8 million | 70,560 |
| 9 million | 79,380 |
| 10 million | 88,200 |
