Under the new measure, the government-backed Hong Kong Mortgage Corporation will relax the ceiling on mortgage financing schemes for first-home buyers. Purchasers will be able to borrow up to 90 per cent of a property’s value to a maximum of HK$8 million (US$1 million), from HK$4 million previously.

First-time homebuyers in Hong Kong can now set their sights on more expensive flats under a new measure to relax mortgage rules announced in the policy address on Wednesday, sparking concerns people may take on too much risk in a downward market.