The Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB) have met to discuss additional support measures from the banking industry for residents affected by the fire at Wang Fuk Court (WFC).
The discussion follows the long-term housing arrangements announced by the Hong Kong government.
The banking sector previously introduced 11 emergency measures after the Tai Po fire incident last year. These included a six-month pre-approved repayment grace period for mortgages, personal loans, and credit card loans.
The measures aim to ease immediate financial pressure on affected residents. They also give residents time to address legal matters, insurance claims, and rehousing arrangements related to their properties.
Recognising that residents may require more time to review the long-term housing options available for WFC, the banking industry has announced three further measures.
First, all 28 retail banks will extend the repayment grace period for existing mortgages, personal loans and credit card loans by a further six months.
The extension will run until the end of November 2026 and will continue to provide short-term financial relief.
Second, banks that hold mortgages for WFC flats will assist affected owners with mortgage-related arrangements linked to their housing options.
For residents choosing the “Flat-for-Flat” option, banks will support the substitution of the original WFC property with the newly purchased Subsidised Sale Flat as mortgage collateral.
Banks will maintain loan terms, including interest rates and remaining instalments, on terms no less favourable than the existing mortgage once the collateral substitution is completed.
Banks will also extend the repayment grace period for the existing mortgage until the new flat is ready for occupation.
For those opting for the “Cash Acquisition” arrangement and repaying their current mortgage, banks will adopt a flexible approach. This will apply if residents later apply for a new mortgage.
Third, the HKMA, HKAB, and participating banks will establish a communication platform. The platform will help coordinate support and address individual cases. They will work with the engagement team coordinated by the Housing Bureau.
The HKMA and HKAB also advised the public to remain vigilant against fraud. They warned about calls falsely claiming to be from banks.
The public should avoid sharing personal or financial information in such cases.
Featured image credit: Edited by Fintech News Hong Kong, based on image by bloodua via Freepik
